GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Tuesday. Here are the top things to know before the market opens.
GIFT Nifty traded flat at 21,845, indicating lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 gained 10.50 points or 0.05% to settle at 21,741.90, while the BSE Sensex ended higher by 31.68 points or 0.04% to 72,271.94.
“Market exhibited strength led by optimism on rate cuts, easing global inflation, and softer bond yields. But profit booking was visible at higher levels as lingering concerns over Red Sea disruptions pose short-term risks to global supply chains and freight costs,” said Vinod Nair, Head of Research at Geojit Financial Services.
Nair also added that, The spotlight of this week is also on FOMC minutes which will provide an insight for 2024 rate cut. Momentum in mid & small caps remains strong, buoyed by a positive macro-outlook however private banks experienced a reversal trend.
Key things to know before share market opens on January 02, 2024
Wall Street
Stock market in the US had a trading holiday on 1st Jan. Previously on Friday Bloomberg reported that the Wall Street’s final session of 2023 saw stocks taking a breather after a rally that put the market on pace for its ninth straight week of gains—the longest winning streak since 2004. The tech-heavy Nasdaq Composite dipped 68.65 points or 0.45% at 15,026.49. The S&P 500 dropped by 11.36 points or 0.24% at 4,771.99, while the Dow Jones Industrial Average ended lower by 36.83 points or 0.10% to 37,673.27.
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 101.39.
Crude Oil
WTI crude prices are trading at $72.08 up by 0.60%, while Brent crude prices are trading at $77.49 up by 0.58%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading mostly in mixed territory on Tuesday morning. The Asia Dow is trading up by 0.46%, Japan’s Nikkei 225 is red, down by 0.22%, Hong Kong’s Hang Seng index is trading up by 0.02% and the benchmark Chinese index Shanghai Composite is trading higher by 0.68%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 855.8 crore, while domestic institutional investors (DII) mopped shares worth net Rs 410.5 crore on January 01, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills and Hindustan Copper to its F&O ban list for January 2, 2023.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said, Nifty remained volatile throughout the session as traders remained indecisive. On the hourly chart, the Nifty fell below 20 DMA on an intraday basis before closing on a positive note. Going forward a decisive fall below 21650 might call for directional fall in the market. On the higher end, a close above 21750 might take the index towards the higher levels.
Bank Nifty Outlook
“The Bank Nifty has fallen below 20DMA on the hourly chart, suggesting a waning bullishness. The sentiment might remain weak over the short term, however immediate support is placed at 48000, where put writers are present heavily. A decisive fall below 48000 might take the index towards 47700/47500. On the higher end, 48300 is a significant level of resistance and bullish momentum might resume only above that level only,” said Rupak De, Senior Technical Analyst at LKP Securities.
