GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a gap up opening on Wednesday. Here is all you need to know before the market opens.
GIFT Nifty was up 93.50 points, or 0.39%, at 24,338.50 indicating a higher start for the domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 closed 18.10 points or 0.08% lower to finish at 24,123.85, while the BSE Sensex jumped 35 points or 0.04% to finish at 79,441.45.
Key things to know before share market opens on July 03, 2024
Fed Chair Jerome Powell’s dovish tone
The U.S. is back on a “disinflationary path,” Federal Reserve Chair Jerome Powell said on Tuesday. However, policymakers need more evidence before cutting interest rates to verify that recent weaker inflation readings provide an accurate picture of the economy. “I think the last reading … and the one before it to a lesser suggest that we are getting back on the disinflationary path,” Powell said, reported Reuters. “We want to be more confident that inflation is moving sustainably down toward 2% … before we start … loosening policy.”
Wall Street
The Wall Street or US markets closed on a record high note after Jerome Powell, Fed Chairperson, said that the US is on a disinflationary path but not ready for a rate cut. The broader market index, the S&P 500, advanced 0.62% to close at 5,509, marking its frist close above the psychological level of 5,500. Similarly, the tech-heavy Nasdaq Composite rose 0.84% to settle at 18,028.76, closing at a record high, buoyed by a 10% jump in Tesla shares. Following the trend, the Dow Jones Industrial Average gained 162.33 points, or 0.41%, to end at 39,331.85.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading up 0.03% at 105.71 on Wednesday morning.
Crude Oil
WTI crude prices were trading at $83.12 up by 0.37%, while Brent crude prices were trading at $86.54 up by 0.35%, on Wednesday morning.
Asian Markets
Following the record gains in the overnight US market and dovish tone by the Fed Chair Jerome Powell, Asian markets opened on a mixed note on Wednesday morning. Japan’s Nikkei 225 was trading up 0.68% at 40,346. The Korean index Kospi was down 0.06% at 2,779.32. The Asia Dow was trading 0.36% higher at 3,599.34. Hang Seng was trading 0.41% higher at 17,841.77. The benchmark Chinese index Shanghai Composite was also flat at 2,996.87.
FII, DII Data
Foreign institutional investors (FII) sold shares net worth Rs 2,000.12 crore. However, domestic institutional investors (DII) bought shares net worth Rs 648.25 crore on July 02, 2024, according to the provisional data available on the NSE.
Technical View
“The Nifty has been unable to sustain at higher levels as the hourly momentum indicator is not supportive which is having a negative crossover. Thus, there shall be some more consolidation before it starts a fresh leg of the upmove. The range of consolidation is likely to be 23900 – 24200. An ideal strategy to trade such a consolidation would be to buy on decline near support zone 24080 – 24000,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty Outlook
“On the downside, we expect the Bank nifty to find support around the 51600 – 51500 zone where support in the form of the Fibonacci retracement level is placed. Going ahead we expect the Bank Nifty to consolidate in the range of 51700 – 52500 from a short-term perspective,” said Gedia.
