Will Nifty scale up to 24,500, or will it face further decline- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Mishra also added that the ongoing global uncertainty is making market participants cautious, and short-term relief seems unlikely. The Nifty is encountering resistance around the 24,350 mark, and a decisive break below 23,900 could lead to a further decline. Traders are advised to adjust their positions with a hedged strategy to navigate the current volatility.

Key things to know before share market opens on August 09, 2024

Wall Street

U.S. stocks jumped on Thursday, with the Nasdaq and S&P 500 each ending more than 2% higher after jobless claims fell more than expected in the latest week, soothing worries the labor market was weakening too quickly, reported Returns. The tech-heavy Nasdaq Composite ended up by 464.21 points or 2.87% at 16,660.02. The S&P 500 ended higher by 119.81 points or 2.30% at 5,319.31, while the Dow Jones Industrial Average is jumped by 683.04 point or 1.76% at 39,446.49.

US Dollar 

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded unchanged at 103.27.

Crude Oil 

WTI crude prices are trading at $76.13 down by 0.08%, while Brent crude prices are trading at $79.09 down by 0.13%, on Friday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in mixed territory on Friday morning. The Asia Dow is trading up by 0.16%, where as the Japan’s Nikkei 225 is trading in green, up by 1.97%, South Korea’s KOSPI index is traded higher by 1.48% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth Rs 2,626.73 crore, while domestic institutional investors (DII) mopped shares worth Rs 577.30 crore on August 08, 2024, according to the provisional data available on the NSE.

F&O Ban

The NSE added Punjab National Bank, Aditya Birla Capital, Aditya Birla Fashion and Retail, Birlasoft, GNFC, Hindustan Copper, India Cements, IndiaMART InterMESH, LIC Housing Finance, Manappuram Finance, RBL Bank in the F&O Ban on August 09, 2024.

Technical View

Commenting on the Technical outlook of Nifty Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that Nifty opened on a weak note and after a volatile first half selling pressure emerged at higher levels resulting in a weak close down ~180 points. on the daily charts the lower end (24380) of the gap area formed on the 5th Aug continues to act as a stiff resistance. 

Gedia also added that the pullback rallies towards the resistance levels is being sold into. The hourly momentum indicator has completed its pullback to the equilibrium line and started a new cycle on the downside. Thus, we can expect the weakness to continue. On the downside, 23900 is the crucial support and immediate target.

Bank Nifty Outlook

“The Bank Nifty was an outperforming sector as compared to Nifty in today’s trading session. However, the overall chart set-up for Bank Nifty is still weak and it is likely to find major resistance around the 50,700 to 50,900 area on an immediate basis. On the downside, the support zone lies at 49,650-700 / 49,000 while the resistance is seen at 50,400 / 50,700-900,” said Tejas Shah, Technical Research, JM Financial & BlinkX.