GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Wednesday. Here’s a look at the key stocks to watch in trade.
GIFT Nifty traded down by 40 points or 0.16% at 24,450 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended up by 112.65 points or 0.46% to settle at 24,433.20 while the BSE Sensex gains 391.26 points or 0.49% to 80,351.64.
“The markets saw a modest uptrend today, with gains of nearly half a percent. After an initial rise, the Nifty gradually climbed throughout the day, closing at 24,414 levels. Sector-wise, auto, pharma, and FMCG sectors showed strong gains, while IT and energy sectors remained subdued. The broader indices also ended the day with slight gains,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that Nifty is approaching the key resistance level of 24,500, and the banking index’s participation will be crucial to surpass this mark. Meanwhile, traders are advised to adopt a “buy on dips” strategy and focus on sectors/themes in line with the current market trend.
Key things to know before share market opens on July 10, 2024
Wall Street
The S&P 500 and Nasdaq notched record-high closes on Tuesday, fueled by gains in Nvidia after U.S. Federal Reserve Chair Jerome Powell told lawmakers that more “good” economic data would strengthen the case for rate cuts, reported Reuters. The tech-heavy Nasdaq Composite ended up by 25.55 points or 0.14% at 18,429.29. The S&P 500 ended higher by 4.13 points or 0.07% at 5,576.98, while the Dow Jones Industrial Average ended lower by 52.82 point or 0.13% at 39,291.97.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.01% at 105.13.
Crude Oil
WTI crude prices are trading at $81.63 up by 0.27%, while Brent crude prices are trading at $84.78 up by 0.14%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Wednesday morning. The Asia Dow is trading up by 0.88%, where as the Japan’s Nikkei 225 is trading in red, down by 0.25%, Hong Kong’s Hang Seng index is traded marginally higher by 0.06% and the benchmark Chinese index Shanghai Composite ended up by 1.26%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 314.46 crore, while domestic institutional investors (DII) mopped shares worth Rs 1,416.46 crore on July 09, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aditya Birla Fashion and Retail, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers GNFC, IEX, India Cements, Indus Tower and Piramal Enterprises in F&O on July 10, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty remained strong throughout the day, holding the support level of 24,300. The sentiment is likely to remain positive as long as it stays above 24,300, where significant put writing has occurred. On the higher end, the 24,500-24,600 range might act as an immediate resistance zone. Overall, the sentiment may continue to favor the bulls in the near term unless the index falls below 24,300.
Bank Nifty Outlook
“The Bank Nifty index witnessed a consolidated move and is stuck in a range between 52700-52100. A decisive break on either side will lead to trending moves. The index remains in a buy-on-dip mode, and a break above 52700 will open up further upside towards 53000, where the highest open interest is built up on the call side. However, if the index fails to hold the support of 52100-52000, it can decline further towards the 51700-51500 mark,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.