GIFT Nifty traded down by 40.50 points or 0.16% at 24,422 indicating a muted opening for domestic indices NSE Nifty 50 and BSE Sensex. Here are the top things to know before market opens on Wednesday, September 18, 2024.
GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a muted opening on Wednesday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 40.50 points or 0.16% at 24,422 indicating a muted opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended up by 34.80 points or 0.14% to settle at 25,418.55 while the BSE Sensex jumped 90.88 points or 0.11% to 83,079.66.
“Markets remained subdued for the third consecutive day, ending slightly in the green. After a flat opening, the Nifty moved within a narrow range, closing at 25,418.55. Sector-wise, realty and auto saw gains, while metal and pharma ended in the red. Simultaneously, profit-booking in the midcap and smallcap segments led to weaker market breadth,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that the recent market action suggests that participants are in a wait-and-watch mode ahead of the US Fed meeting, although rotational buying in large-cap stocks is maintaining a positive tone. We recommend continuing with a “buy on dips” strategy, targeting an upside of 25,550 in the Nifty. Additionally, selective sectors like banking, financials, realty, and IT are presenting stock-specific buying opportunities so plan the trades accordingly.
Key things to know before share market opens on September 18, 2024
Wall Street
U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years, reported Reuters. The tech-heavy Nasdaq Composite ended up by 35.93 points or 0.20% at 17,628.06 The S&P 500 ended up by 1.49 points or 0.03% at 5,634.58, while the Dow Jones Industrial Average is trading down by 15.90 point or 0.04% at 41,606.18.
Fed to announce repo rate decision
Investors are keenly focused on whether Fed Chair Jerome Powell will opt for a bold and rare 50 basis point cut to fend off a potential recession, or stick with a more conservative 25 basis point reduction as the central bank aims for a soft landing for the US economy.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.03% at 100.88.
Crude Oil
WTI crude prices are trading at $71.12 down by 0.10%, while Brent crude prices are trading at $73.69 lower by 0.01%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Wednesday morning. The Asia Dow is trading down by 0.32%, where as the Japan’s Nikkei 225 is trading in green, up by 0.63%, South Korea’s KOSPI index is traded higher by 0.95% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14% on Friday.
FII, DII Data
Foreign institutional investors (FII) mopped shares worth Rs 482.69 crore, while domestic institutional investors (DII) bought shares worth Rs 874.15 crore on September 17, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Biocon, Punjab National Bank, Aarti Industries, Balrampur Chini Mills, Bandhan Bank, Birlasoft, GNFC, Granules India, Hindustan Copper, LIC Housing Finance, and RBL Bank in the F&O Ban on September 18, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that “Nifty continues to consolidate near its all-time high, where a trendline resistance is observed. A breakout from the recent range-bound pattern could provide a clear direction for the Nifty. Immediate support is at 25,350, and a fall below this level might lead to the unwinding of put option writing positions, potentially triggering a correction toward 25,000. On the upside, resistance is seen at 25,500, and a strong upward move may be expected if Nifty breaks above this level.
Bank Nifty Outlook
“The Bank Nifty was an underperforming sector as compared to Nifty in today’s trading session. However, we believe that the rally in BN is likely to continue and it can test the next resistance zone of 52,750-800 on the higher side. On the downside, the support zone lies at 51,900 / 51,400-500 while the resistance is seen at 52,350-400 / 52,750-800,” said Tejas Shah, Technical Research, JM Financial & BlinkX.