GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 11 points or 0.05% at 22,460 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended up by 203.30 or 0.92% to settle at 22,403.85 while the BSE soared 676.69 points or 0.93% to 73,663.72.
“The market exhibited volatility during trading hours but managed to gain nearly one percent, indicating a continuation of its recovery trend. Positive global cues led to a gap-up opening in the Nifty; however, the initial gains diminished quickly as the session progressed. Subsequently, it witnessed sharp fluctuations on both sides before settling near the day’s peak around the 22,095 level. Most key sectors participated in this movement, with IT and realty sectors being notable gainers. The broader indices followed suit, each registering a nearly one percent increase” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that,Nifty successfully surpassed the obstacle at 22,300, with a slight dip in the volatility index. The sustainability of this upward momentum could pave the way for further gains towards 22,600 levels. The participation of major players in the banking and IT sectors, coupled with cues from the US markets, is expected to be crucial going forward. Traders are advised to adjust their strategies accordingly, with focus on stock selection.
Key things to know before share market opens on May 17, 2024
Wall Street
U.S. stocks closed lower on Thursday after the Dow (.DJI), opens new tab reached an intra-day high of 40,000 for the first time, as investors continued to recalibrate their rate-cut expectations following data showing a slowdown in inflation, as well as strong corporate earnings results, Reuters reported. The tech-heavy Nasdaq Composite ended down by 44.07 points or 0.26% at 16,698.32. The S&P 500 ends lower by 11.05 points or 0.21% at 5,297.10, while the Dow Jones Industrial Average ended down by 38.62 points or 0.10% at 39,869.38.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.04% at 104.53.
Crude Oil
WTI crude prices are trading at $79.25 up by 0.03%, while Brent crude prices are trading at $83.35 up by 0.10%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Friday morning. The Asia Dow is trading up by 0.99%, where as the Japan’s Nikkei 225 is trading in red, down by 0.98%, Hong Kong’s Hang Seng index is ended higher by 1.59% and the benchmark Chinese index Shanghai Composite is ended up by 0.08%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 776.49 crore, while domestic institutional investors (DII) mopped shares worth net Rs 2,127.81 crore on May 16, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Bandhan Bank, Biocon, Birlasoft, Granules, GMR Infra, Granules, Hindustan Copper, Vodafone Idea, Piramal Enterprises, Sail, India Cement, and Zee Entertainment Enterprise in F&O on May 17, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Finally, the index has moved back up into the rising channel after a few days of failed attempts. Over the next few days, the bulls might have the upper hand in the market as the index moved above the critical moving average after several days. On the higher side, the Nifty might move towards 22,600 in the short term. Support on the lower end remains at 22,250; the sentiment is expected to remain strong as long as it holds above this level.
Bank Nifty Outlook
“The Bank Nifty witnessed a robust comeback by the bulls, overpowering the bears and orchestrating an intraday surge of 1000 points. The next immediate hurdle for the index stands at 48200, aligned with the 20-day moving average (20DMA), breaching which could trigger additional short covering towards the 49000 mark. On the downside, support is established at the 47600-47500 zone. As long as this support level remains unbreached, the bullish sentiment prevails.,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.