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 the key stocks to watch in trade.
GIFT Nifty traded down by 76.50 points or 0.33% at 23,253.50 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended up by 468.75 or 2.05% to settle at 23,290.15 while the BSE Sensex jumped 1618.85 points or 2.16% to 76,693.36.
“Markets extended gains for the third consecutive session, rising by 2% in line with the ongoing positive trend. Following a flat start, the Nifty gradually climbed, nearing its record high. Most sectors contributed to the rise, with IT, auto, and energy leading the gains. The broader indices also aligned with this trend, increasing by 1.4% to 2.3%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, Markets have nearly reclaimed their record high and appear poised to maintain this momentum. Rotational buying across key sectors, including IT and FMCG, which had previously been on the sidelines, has bolstered the upward movement. Therefore, we recommend maintaining a “buy on dips” strategy as long as the Nifty holds above the 22,600 level
Key things to know before share market opens on June 10, 2024
Wall Street
Global stocks pulled back from an all-time high on Friday after surprisingly strong U.S. monthly jobs data dimmed hopes that the Federal Reserve would soon follow eurozone and Canadian interest rate cuts, causing Treasury yields to shoot higher, reported Reuters. The tech-heavy Nasdaq Composite ended down by 39.99 points or 0.23% at 17,133.13. The S&P 500 ended lower by just 5.99 points or 0.11% at 5,346.99, while the Dow Jones Industrial Average dipped by 87.18 point or 0.22% at 38,798.99.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.15% at 105.10.
Crude Oil
WTI crude prices are trading at $75.53 up by 0.20%, while Brent crude prices are trading at $79.62 unchanged, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading on a mixed note on Monday morning. The Asia Dow is trading up by 0.97%, whereas Japan’s Nikkei 225 is trading in green, up by 0.52%, Hong Kong’s Hang Seng index ended lower by 0.59% and the benchmark Chinese index Shanghai Composite traded up by 0.08%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 4,391.02 crore, while domestic institutional investors (DII) offloaded shares worth Rs 1,289.75 crore on June 07, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Balrampur Chini Mills, SAIL, Zee Entertainment Enterprises in F&O on June 10, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said “The Nifty moved up significantly after a flat closing in the previous trading session. The short-term trend looks very positive as the index closed near an all-time high. Going forward, the market remains a buy on dips as long as 23000 is not broken. On the higher end, the index might move towards 23500-23600. On the lower end, profit booking might occur only below 23000.
Bank Nifty Outlook
“Bank Nifty has shown bullish momentum, taking support near its 10-day moving average and forming a bullish engulfing candle on the daily chart. It closed near its resistance level, indicating strong buying interest. The key resistance level for Bank Nifty is 50,500, while 49,200 will act as crucial support. This setup suggests potential for further upward movement if the resistance is breached.,” said Rupak De, Senior Technical Analyst, LKP Securities.