GIFT Nifty intimated a potential languid commencement for Indian equity indices BSE Sensex and NSE Nifty 50 on Wednesday, following four consecutive sessions of ascension. Here’s the essential intel before the market bell tolls.
GIFT Nifty edged up by 49 points or 0.22% to 22,645, forecasting a tepid outset for the domestic indices NSE Nifty 50 and BSE Sensex on Thursday. In contrast, the NSE Nifty 50 ascended by 68.75 points or 0.31% to conclude at 22,597.80 on Wednesday, whereas the BSE Sensex receded by 267.75 points or 0.36% to close at 74,221.
Critical Insights Before the Market Opens on May 23, 2024
Wall Street Dynamics The American bourse retreated post the Federal Reserve’s disclosure of the latest policy meeting minutes, which unveiled discontent among Fed officials regarding recent inflation metrics in the United States. The Dow Jones Industrial Average declined by 201.95 points or 0.51% to 39,671.04. The S&P 500 diminished by 14.4 points or 0.27% to 5,307.01, while the tech-centric Nasdaq Composite retracted by 31.08 points or 0.18% to 16,801.54.
US Dollar Trajectory The US Dollar Index (DXY), which gauges the greenback’s valuation against a sextet of major currencies, remained largely stagnant, inching up by 0.01% to 104.90.
Crude Oil Movements WTI crude prices were quoted at $76.95, reflecting a downturn of 0.80%, while Brent crude prices stood at $81.25, down by 0.78%, as of Thursday morning.
Asian Markets Sentiment Asian equities predominantly traded in the red during the early hours on Wednesday, mirroring the overnight downturn in US markets. The Asia Dow dipped by 0.07% to 3,452.98. Hong Kong’s Hang Seng descended by 0.89% to 19,024.41. The Shanghai Composite index slid by 0.27%, trading at 3,149.88. Diverging from the trend, Japan’s Nikkei 225 ascended by 0.65%, trading at 38,867.36.
FII, DII Transactions Foreign institutional investors (FII) offloaded shares worth Rs 686.04 crore, whereas domestic institutional investors (DII) acquired shares valued at Rs 961.91 crore on May 22, 2024, as per provisional data from the NSE.
Technical Analysis “Daily charts illustrate a consistent upward trajectory for the Nifty, marking gains for the fifth successive trading day. Sectoral rotation, particularly within FMCG and Pharma, has bolstered the index. The Nifty is progressively advancing towards the previous all-time high of 22,795. Intraday corrections should be leveraged for buying, maintaining a trailing stoploss at 22,450 for long positions,” articulated Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty Forecast “The Bank Nifty is anticipated to resume its upward movement towards 48,260 – 48,700 in the ensuing trading sessions. A trailing stoploss for long positions should be positioned at 47,400,” added Jatin Gedia.
