Will Nifty hold 21,700 mark or continue to gain? See GIFT Nifty, FII data, crude, more before market opens
GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Tuesday. Here is all you need to know before the market opens.
GIFT Nifty trading up by 101 points or 0.46% at 21,967 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 gained 385 points or 1.80% to settle at 21,737.60, while the BSE Sensex closed 1,240.90 points or 1.76% higher at 71,941.57.
Key things to know before share market opens on January 30, 2024
Wall Street
The three major US benchmark indices closed in the green, with the S&P 500 closing at a record high of 4,927.93. The tech-heavy Nasdaq Composite gained 1.12% at 15,628.04. The 30-stock Dow Industrial Average inched up 224.02 points, or 0.59%, to 38,333.45.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded lower by 0.15% at 103.46.
WTI crude prices are trading at $77.12 up by 0.45%, while Brent crude prices are trading at $82.12 up by 0.35%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region were trading on a mixed note during the early trade hours. The Asia Dow is trading down by 1.50%, whereas Japan’s Nikkei 225 is trading in the green, up by 0.11% and Hong Kong’s Hang Seng index is trading lower by 1.68%. The benchmark Chinese index Shanghai Composite is trading lower by 0.75% during the early trade hours.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 110.01 crore. Domestic institutional investors (DII) bought shares worth net Rs 3,221.34 crore on January 29, 2024, according to the provisional data available on the NSE.
Technical View
Commenting on the Technical outlook of Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, said that the Nifty opened gap up and continued to inch higher throughout the day to close in the green up ~385 points. On the daily charts we can observe that the Nifty has breached the previous swing high of 21750 and hence violates the downtrend as the lower top lower bottom formation has been violated. During the fall the Nifty held on to the support of the 40 day average placed around 21200 which shall now act as a lower boundary during the consolidation phase. On the upside, the Index can continue its pullback towards 21913 which coincides with the 78.6% fibonacci retracement level of the fall from 22124 – 21137 and also the gap formed on the 17th January, 2024 in the range 21850 – 22000 shall act as an immediate hurdle going ahead. The daily momentum indicator has a negative crossover however it has reached the equilibrium line and also prices are not showing weakness which can lead to a range bound action over the next few trading sessions. Considering the above parameters we shall change our outlook on the Nifty to sideways and the broad range of consolidation is likely to be 21200 – 22000.
Bank Nifty Outlook
“Bank Nifty is in the process of retracing the fall it has witnessed from 48300 – 44500 and hence the pullback can continue till 46000 – 46200 from short term perspective. On the downside 45110 is the crucial support from short term perspective,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
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