GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Thursday. Here is all you need to know before the market opens.
GIFT Nifty traded up by 32 points or 0.15% at 22,054 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended up by just 1.10 points or 0.01% to settle at 21,930.50, while the BSE Sensex ended lower by 34.09 points or 0.05% to 72,152.
RBI policy to be announced today, making it the first policy decision of the calendar year 2024 and the final one for the financial year 2024. Expectations are high that the committee will opt to keep the repo rate steady at its current level of 6.5 percent. This would signify the sixth consecutive instance of maintaining the rate unchanged. The decision is geared towards fostering the goal of attaining a consumer price-based inflation (CPI) target of 4 percent.
“Markets continued with the range bound bias and ended almost unchanged. After the gap-up start, Nifty oscillated in a narrow band and finally settled at 21,930.50 levels. Meanwhile, a mixed trend on the sectoral front kept the traders occupied wherein realty and energy pack were among the top performers while IT and auto took a breather. The broader indices also managed to do well amid consolidation and gained nearly a percent each,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, we maintain our positive stance amid consolidation and suggest continuing with a “buy on dips” approach until Nifty holds 21,600. However, participation from the banking and financial majors would be critical for trend resumption. Apart from the domestic factors, we suggest keeping a close eye on global markets for cues.
Key things to know before share market opens on February 8, 2024
Wall Street
A rally in tech mega caps drove U.S. stocks higher, with the S&P 500 approaching its 5,000 milestone. Bonds drifted before a record $42 billion sale of 10-year Treasuries, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 150.77 points or 0.97% at 15,759.77. The S&P 500 gained by 41.70 points or 0.84% at 4,995.93, while the Dow Jones Industrial Average surged by 143.68 points or 0.37% at 38,665.04.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.05% at 104.01.
Crude Oil
WTI crude prices are trading at $73.99 up by 0.18%, while Brent crude prices are trading at $79.31 up by 0.07%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading Thursday’s session in mixed territory. The Asia Dow is trading up by 0.85%, where as the Japan’s Nikkei 225 is trading in green, up by 0.87%, Hong Kong’s Hang Seng index is trading lower by 0.34% and the benchmark Chinese index Shanghai Composite is gained by 1.44% to end Wednesday’s trading session.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 1,691 crore, while domestic institutional investors (DII) bought shares worth net Rs 327.7 crore on February 7, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE added Ashok Leyland, Balrampur Chini Mills, Delta Corp, Hindustan Copper, India Cements, Indus Tower, National Aluminium, SAIL, UPL, and Zee Entertainment Enterprise on February 8, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Bears exerted downward pressure on the Nifty after an initially positive start. Sentiment remained somewhat weak as the market closed. Support is positioned at 21,850, and a breach below this level could potentially initiate a correction towards 21,700. On the upside, resistance is identified at 22,000.
Bank Nifty Outlook
“The Bank Nifty index is currently witnessing an intense battle between bulls and bears, and a decisive move is anticipated soon. The lower-end support is situated in the 45600-45500 zone, and a conclusive break below this on a closing basis is expected to trigger a sharp correction. Conversely, a break above the higher-end resistance at 46200 could lead to substantial short-covering moves, propelling the index towards the 46500 level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.