GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a higher opening on Thursday. Here is all you need to know before the market opens.
GIFT Nifty was up 67 points, or 0.27%, at 25,116 indicating a higher start for the domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 closed 94 points or 0.38% higher to settle at 24,951, while the BSE Sensex rose 286 points or 0.35% to finish at 81,741.
Key things to know before share market opens on August 01, 2024
Wall Street
US markets ended higher as Powell kept the interest rates unchanged. However, pointed towards the possibility of a rate cut in September. Overseas investors poured money back into chip stocks as they rose higher. The broader market index, the S&P 500, jumped 1.58% to close at 5,522. Similarly, the tech-heavy Nasdaq Composite soared 2.64% to settle at 17,599. Meanwhile, the Dow Jones Industrial Average advanced 99.46 points, or 0.24%, to end at 40,843.
Federal Reserve Chairperson Jerome Powell
On Wednesday, Fed Chair Jerome Powell said that the central bank could possibly slash its benchmark interest rate at its next meeting in September. Also, the recent economic data points toward inflation data falling back toward the central bank’s 2% target, while the unemployment rate has crept up above 4%. “I don’t think of the labor market in its current state as a likely source of significant inflationary pressures. So I would not like to see material further cooling in the labor market,” Powell said.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading down 0.47% at 103.97 on Thursday morning.
Crude Oil
WTI crude prices were trading at $78.65 up by 0.95%, while Brent crude prices were trading at $81.42 up by 0.83%, on Thursday morning.
Asian Markets
On Thursday morning, Asian markets were majorly trading on a higher note following the overnight gains in the US markets. Japan’s Nikkei 225 tumbled 2.83% to 38,002. The Korean index Kospi was up 0.14% at 2,775. However, the Asia Dow was trading 1.63% higher at 3,604.51. The benchmark Chinese index Shanghai Composite was trading down 0.01% at 2,938.47.
FII, DII Data
Foreign institutional investors (FII) sold shares net worth Rs 3,462.36 crore. However, domestic institutional investors (DII) bought shares net worth Rs 3,366.51 crore on July 31, 2024, according to the provisional data available on the NSE.
Expert’s View
“On the daily chart, we can observe that the Nifty has been consolidating in the range of 24750 – 25000 since the last three trading sessions. The hourly momentum indicator has reached the equilibrium line, indicating that the consolidation is complete and Nifty is now poised for a breakout. The short-term target is placed at 25350 – 25530 and crucial support is placed at 24750 – 24700,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty Outlook
According to Jaitn Gedia of Sharekhan Bank Nifty has witnessed a rangebound day of trade on Wednesday. It managed to hold on to the 51300 level where the 40-day moving average is placed. “We expect the bank Nifty to resume its upmove towards 52000 – 52120 where the 20-day moving average is placed. Overall, we expect a bullish move in the indices going ahead,” said Gedia.