GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a positive opening on Wednesday. Here is all you need to know before the market opens.
GIFT Nifty was 118 points or 0.54% higher at 22,065.50 indicating a positive start for the domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 dropped 1,379 points or 5.93% to finish at 21,884.50, while the BSE Sensex slumped 4,389.73 points or 5.74% to finish at 72,079.
Key things to know before share market opens on June 05, 2024
Wall Street
The Wall Street or US market closed a bit higher as US labour market data came softer than expected affirming rate cuts. The Dow Jones Industrial Average rose 140.26 points or 0.36% to 38,711.29. The S&P 500 dropped 0.15% to 5,291.34. Similarly, the tech-heavy Nasdaq Composite pulled back 0.17% to end at 16,857.05.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded flat at 104.16.
Crude Oil
WTI crude prices were trading at $73.10 up by 0.24%, while Brent crude prices were trading at $77.38 up by 0.22%, on Wednesday morning.
Asian Markets
Asian markets were volatile but majorly fell, with Indian stocks leading the fall on the tighter-than-expected election race. Japan’s Nikkei 225 was trading down 447 points or 1.15% at 38,391. Similarly, the Asia Dow was trading 1.15% lower at 3,427.80. Hang Seng was up 0.22% to trade at 18,444. The benchmark Chinese index Shanghai Composite was trading down 0.03% to 3,090.
FII, DII Data
Foreign institutional investors (FII) sold shares net worth Rs 12,436.22 crore. Similarly, domestic institutional investors (DII) sold shares net worth Rs 3,318.98 crore on June 04, 2024, according to the provisional data available on the NSE.
Technical View
On Tuesday, Nifty witnessed a gap down opening and nosedived to close down 6% for the day. The Nifty has decisively broken down below the previous swing low of 21820, violating the higher top and higher bottom formation and suggesting a change in the short-term trend. “Our primary outlook is that Nifty shall now retrace the rise it has witnessed from 18840 to 23340 between the period October 2024 to May 2024. The crucial support levels to keep handy are 21100 which is the 200-day moving average and 50% Fibonacci retracement level of the entire upmove. A close below this support zone can lead to a further decline towards 20560 which is the 61.82% Fibonacci retracement level. On the upside, 22310 – 22550 shall act as an immediate hurdle from a short-term perspective. The range of consolidation is likely to be 21000 – 22500,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty Outlook
“Bank Nifty has also broken down from the rising channel indicating change in trend. We expect the Bank Nifty to correct towards 46150 – 44000 which are the 200 day moving average and the 38.2% Fibonacci retracement level of the rise from 32300 – 51100. On the upside, 48600 – 49200 shall act as an immediate hurdle,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
