GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty traded up by 47 points or 0.21% at 22,710 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended down by 216.05 or 0.95% to settle at 22,488.15 while the BSE Sensex plunged 617.30 points or 0.83% to 73,885.60.
“Markets traded under pressure on the monthly expiry day, losing nearly a percent in line with the prevailing trend. After a flat start, the Nifty gradually declined throughout the day, falling below the crucial support zone of 22,550. However, a recovery in the last half hour reduced some of the losses. All key sectors, except banking, followed this downward trend, with metals, IT, and pharma among the top losers. The broader indices also faced significant pressure, each losing nearly one and a half percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, The recent decline has disrupted the positive momentum, with Nifty falling below its crucial short-term moving average, the 20 DEMA. A decisive break of the 22,400 level could trigger a further drop to the 22,000-22,150 zone. We suggest aligning trades accordingly and adopting a hedged approach.
Key things to know before share market opens on May 31, 2024
Wall Street
U.S. stocks ended lower on Thursday, with the Nasdaq falling more than 1% and technology shares leading declines after a disappointing Salesforce forecast. Investors also digested data showing the economy had grown slower than previously expected in the first quarter, repoted Reuters. The tech-heavy Nasdaq Composite ended down by 183.50 points or 1.08% at 16,737.08. The S&P 500 ended lower by 31.47 points or 0.60% at 5,235.48, while the Dow Jones Industrial Average ended lower by 330.06 points or 0.86% at 38,111.48.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.34% at 104.77.
Crude Oil
WTI crude prices are trading at $77.70 down by 0.22%, while Brent crude prices are trading at $81.73 down by 0.16%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading on a mixed note on Friday morning. The Asia Dow is trading down by 1.22%, where as the Japan’s Nikkei 225 is trading in green, up by 0.13%, Hong Kong’s Hang Seng index is ended lower by 1.38% and the benchmark Chinese index Shanghai Composite ended lower by 0.62%.
FII, DII Data
Foreign institutional investors (FII) sold shares worth Rs 3,050 crore, while domestic institutional investors (DII) bought shares worth Rs 3,433 crore on May 30, 2024, according to the provisional data available on the NSE.
F&O Ban
There are no stocks in F&O ban today on May 31, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty has remained volatile during the session with predominant bearishness. The sentiment for the short term remains weak as the index slipped below the critical 21-day Exponential Moving Average (21EMA). Call writing activity was significant at 22,500. Therefore, to witness a meaningful recovery, Nifty needs to sustain above 22,500. However, failure to move above 22,500 might attract fresh selling in the market, potentially driving the index towards 22,300/22,100.
Bank Nifty Outlook
“After a gap down opening, Bank Nifty found support near its 21-day EMA, closing with a bullish candlestick. A recovery in large-cap private bank stocks contributed to keeping the index in the green. The critical support level for Bank Nifty is 48,300, while 49,000 serves as strong resistance. A decisive movement is anticipated once these levels are breached,” said Rupak De, Senior Technical Analyst, LKP Securities.
