GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Tuesday. Here is all you need to know before the market opens.
GIFT Nifty traded up by 8 points or 0.04% at 22,151.50 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 gained 202.90 points or 0.93% to settle at 22,097.45, while the BSE Sensex ended higher by 759.49 points or 1.05% to 73,327.94.
“Market started the week on an upbeat note and gained nearly a percent, in continuation to Friday’s move. The IT majors were on the front foot at the opening trade and the move further cascaded to select heavyweights from the banking and energy basket as the day progressed. Consequently, the Nifty index settled around the day’s high at 22,097.45 level. The broader indices also inched higher and posted modest gains,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Nifty may take a breather around 22,150 however the tone is likely to remain positive. We are closely eyeing the performance of banking majors for cues as others have done their part in the recent surge. A decisive break above 48,400 in the banking index could prompt the index to a newer high. Amid all, we thus suggest continuing with a “buy on dips” approach, with a focus on stock selection.
Key things to know before share market opens on January 16, 2024
Wall Street
The U.S. Treasury two-year yields dropped to the lowest level since May, while stocks came under pressure as a surprise decline in producer prices reinforced bets on Federal Reserve rate cuts this year, as reported by Bloomberg on January 12th. The tech-heavy Nasdaq Composite gained just 2.58 points or 0.02% at 14,972.76. The S&P 500 surged by 3.59 points or 0.08% at 4,783.83, while the Dow Jones Industrial Average traded down by 118.04 points or 0.31% at 37,592.98 on January 12th. The U.S. markets were shut on January 15th on the banks of Martin Luther King Jr. Day.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.22% at 102.63.
Crude Oil
WTI crude prices are trading at $72.86 up by 0.34%, while Brent crude prices are trading at $78.44 up by 0.37%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Tuesday morning. The Asia Dow is trading up by 1.05%, Japan’s Nikkei 225 is red, down by 0.46%, Hong Kong’s Hang Seng index is trading down by 0.17% and the benchmark Chinese index Shanghai Composite is trading higher by 0.15%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1085.7 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 820.7 crore on January 15, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Bandhan Bank, Bharat Heavy Electronics, Biocon, Chambal Fertilizers, Delta Corp, Escorts Kubota, Hindustan Copper, India Cements, Indus Tower, Metropolis Healthcare, Piramal Enterprise, Polycab India, PVRINOX, SAIL, and Zee Entertainment to its F&O ban list for January 16, 2024.
Technical View
Commenting on the Technical outlook of Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said The Nifty bulls maintained their momentum, propelling the index to new highs beyond the 22,000 mark. The major support for the index is situated at the 21,800 level, and a breach below this would be essential to negate the prevailing trend. The next immediate upside targets for the index are positioned at 22,200/22,300 levels. Sustaining above these levels could potentially lead the index towards the 22,500 mark.
Bank Nifty Outlook
“The Bank Nifty bulls maintained control as the index successfully surpassed the critical resistance of 48,000 on a closing basis. Market participants are closely watching the upcoming HDFC Bank results, as a positive outcome could fuel additional upside towards the 50,000 mark. The lower end support for the index is positioned at 47,700, and a breach below this level may dampen the prevailing bullish sentiment,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.