GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Thursday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 245 points or 1% at 24,140 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended up by 304.95 points or 1.27% to settle at 24,297.50 while the BSE Sensex jumped 874.94 points or 1.11% to 79,468.01.
“Markets experienced a breather after the recent decline, gaining over a percent, driven by strong global cues. After an initial gap-up start, the Nifty oscillated within a range and finally settled near the day’s high at 24,297.50. Most sectors contributed to the upward movement, with metals, energy, and pharma being the top performers. The broader indices also saw a notable rebound, gaining between 2.5% and 3%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that although volatility has significantly cooled-off after the sharp surge, there remains potential for further decline. On the index front, a decisive close above 24,500 in the Nifty is needed to ease pressure and trigger a sustained rebound. Given the current conditions, we maintain a cautious outlook and recommend continuing with a hedged approach.
Key things to know before share market opens on August 08, 2024
Wall Street
U.S. stocks ended lower on Wednesday, with the Nasdaq falling 1% as technology shares declined and weak demand in a 10-year Treasury auction stoked investor jitters in choppy trade, reported Returns. The tech-heavy Nasdaq Composite ended down by 171.04 points or 1.05% at 16,195.85. The S&P 500 ended lower by 40.53 points or 0.77% at 5,199.50, while the Dow Jones Industrial Average is down by 234.21 point or 0.60% at 38,763.45.
RBI Repo Rate Decision Today
Reserve Bank of India (RBI) Governor Shaktikanta Das is set to announce the Monetary Policy on Thursday, August 8, at 10 a.m. (IST). The RBI’s announcement will set the key benchmark interest rates for the Indian economy, which have remained unchanged at 6.5 percent for the past 18 months.
Meanwhile, global markets have experienced increased volatility due to rising fears of a potential recession in the United States. Markets saw significant declines, marked in red, following the release of US job data at the end of last week.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.03% at 103.08.
Crude Oil
WTI crude prices are trading at $75.56 up by 0.43%, while Brent crude prices are trading at $78.65 up by 0.40%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Thursday morning. The Asia Dow is trading down by 0.24%, where as the Japan’s Nikkei 225 is trading in red, down by 1.41%, Hong Kong’s Hang Seng index is traded lower by 0.76% and the benchmark Chinese index Shanghai Composite trading in red, down by 0.09%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 3,314.76 crore, while domestic institutional investors (DII) mopped shares worth Rs 3,801.21 crore on August 07, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aditya Birla Fashion and Retail, Aditya Birla Capital, Birlasoft, GNFC, Hindustan Copper, India Cements, IndiaMART InterMESH, LIC Housing Finance, Manappuram Finance, RBL Bank in the F&O Ban on August 08, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that Nifty remained sideways during the session as traders waited for the RBI monetary policy meeting scheduled for Thursday. An indecisive candlestick pattern is visible on the daily chart. On the higher end, resistance is observed at the 24,400-24,500 levels. Selling pressure around that level might induce a correction in the market. On the higher end, the trend might change to bullish if Nifty gives a decisive breakout above 24,500.
Bank Nifty Outlook
“The bank Nifty witnessed a late surge which helped it to close well above intraday lows. The bank Nifty can witness a pullback over the next few trading sessions till 50600 – 50800 from short term perspective. On the downside, 49800 – 49700 is the crucial support zone,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.