GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a subdued opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty was flat at 22,917 indicating a muted start for the domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 advanced 201 points or 0.89% to finish at 22,821.40, while the BSE Sensex jumped 692 points or 0.93% to finish at 75,075.
Key things to know before share market opens on June 07, 2024
Wall Street
The Wall Street or US market closed in a mixed ahead of a key labour market report. The tech-heavy Nasdaq Composite fell 0.09% to end at 17,173.12. The S&P 500 pulled back 0.02% to 5,352.96. However, the Dow Jones Industrial Average rose 0.20% to 38,886.17.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded down 0.02% at 104.14.
Crude Oil
WTI crude prices were trading at $75.66 down by 0.02%, while Brent crude prices were trading at $79.97 down by 0.04%, on Friday morning.
Asian Markets
Asian markets were majorly up as market participants awaited key economic data from China and Japan. Also, investors are assessing the European Central Bank’s interest rate cut. Japan’s Nikkei 225 was trading up 0.01% at 38,708. Similarly, the Asia Dow was trading 0.72% higher at 3,471.35. Hang Seng was up 0.28% to trade at 18,477. The benchmark Chinese index Shanghai Composite was trading down 0.20% to 3,043.
FII, DII Data
Foreign institutional investors (FII) sold shares net worth Rs 6,867.72 crore. However, domestic institutional investors (DII) bought shares net worth Rs 3,718.38 crore on June 06, 2024, according to the provisional data available on the NSE.
RBI MPC
With the Reserve Bank of India’s Monetary Policy Committee all set to announce its decision on interest rates on June 7, economists and experts said that the central bank is likely to maintain the status quo on the repo rate at 6.50 per cent. The Reserve Bank of India’s Monetary Policy Committee kick-started its three-day meeting on Wednesday (June 5), in the immediate backdrop of Lok Sabha election results. The six-member committee entrusted with the task of setting India’s benchmark interest rate, the repo rate, commenced the meeting on June 5 and will end on June 7.
Technical View
“The Nifty continued to rise after a bullish harami pattern formation yesterday on the daily timeframe. However, the index remained range-bound during the day, oscillating between 22,650 and 22,900. The India VIX has slipped sharply below 17 in the last two days, signalling low volatility. In the near term, the index might continue to remain within the bands of 22,600-23,000,” said Rupak De, Senior Technical Analyst, LKP Securities.
Bank Nifty Outlook
On Thursday, Bank Nifty witnessed a rangebound day of trade. The RBI policy event is likely to have a bearing on the Bank Nifty on Friday. Key Support levels are placed at 48800 – 48500 while key resistance is at 49700 – 50000 zone. The Bank Nifty is expected to consolidate around 49000 in Friday’s trading session, said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.