GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Monday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 340 points or 1.38% at 24,375 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended down by 293.20 points or 1.17% to settle at 24,717.70 while the BSE Sensex fell 885.59 points or 1.08% to 80,981.96.
“On Friday, the markets traded under pressure and lost over a percent due to weak global cues. After a gap-down start, Nifty fluctuated within a range and eventually closed near the day’s low. Most sectors mirrored the benchmark’s decline, with realty, auto, and metal being the top losers. The broader indices also fell, each losing over half a percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that Nifty struggled to surpass the hurdle at 25,100, and Friday’s close suggests a potential further dip toward the immediate support zone around the 20-day EMA around 24,500 level. Besides earnings, participants are also taking cues from the global front, particularly the US, which has been experiencing significant volatility recently. Given this scenario, it is advisable to limit overnight leveraged positions and opt for hedged trades.
Key things to know before share market opens on August 05, 2024
Wall Street
U.S. stocks sold off for a second straight session on Friday, and the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession, reported Returns. The tech-heavy Nasdaq Composite ended down by 417.99 points or 2.43% at 16,776.16. The S&P 500 ended lower by 100.12 points or 1.84% at 5,346.56, while the Dow Jones Industrial Average is down by 610.71 point or 1.51% at 39,737.26.
Intel shares plunge as much as 30%
Intel shares nosedived nearly 30% on Friday after the American chipmaker announced significant layoffs and disappointing earnings. The company revealed plans to cut more than 15% of its workforce, approximately 15,000 jobs, and to scrap its dividend. Additionally, Intel reported a loss of $1.6 billion in its second quarter and issued a pessimistic forecast for the third quarter. The news triggered a massive selloff of global semiconductor stocks, dragging the entire market down and marking Intel’s worst day in decades.
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 103.19.
Crude Oil
WTI crude prices are trading at $73.81 up by 0.36%, while Brent crude prices are trading at $77.10 up by 0.37%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Monday morning. The Asia Dow is trading down by 6.89%, where as the Japan’s Nikkei 225 is trading in red, down by 5.64%, South Korea’s KOSPI index is traded lower by 3.77% and the benchmark Chinese index Shanghai Composite ended down by 0.92%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 3,310.00 crore, while domestic institutional investors (DII) mopped shares worth Rs 2,965.94 crore on August 02, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aditya Birla Capital, Birlasoft, Chambal Fertilisers and Chemicals, Gujarat Narmada Vly Frtlzrs & Chmcl, Granules India, India cements, India Mart, and RBL Bank in F&O Ban on August 05, 2024.
Technical View
Commenting on the Technical outlook of Nifty Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that Nifty opened on gap down today and witnessed weak price action during the day. It closed down ~293 points. On the daily charts we can observe that the Nifty has closed be low of the last four trading sessions. There was a breakout failure as Nifty did not witness follow through buying interest on the upside. We expect the Nifty to retrace towards 24600 – 24550 where support in the form of 20 day moving average and 38.2% fibonacci retracement level is placed. On the upside, 24820 – 24850 is the immediate resistance.
Bank Nifty Outlook
“Bank Nifty consolidated around the 40 day moving average (51318) and hence the fall was less intense as compared to Nifty. The bank Nifty has been underperforming and can continue to do so. On the weekly chart the bank nifty has formed an Inside Bar pattern and thus making the extremes 52550 – 50440 crucial levels to watch out for over the next few trading sessions. A range breakout shall decide the further trend hereon. Thus, shall maintain our rangebound outlook for the Bank Nifty,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
