GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a very high opening on Monday after snapping a losing streak on Friday. Here is all you need to know before the market opens.
GIFT Nifty was 471 points or 2.08% higher at 23,159 indicating a positive start for the domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 gained 42 points or 0.19% to finish at 22,531, while the BSE Sensex rose 76 points or 0.10% to finish at 73,961.
Key things to know before share market opens on June 03, 2024
Wall Street
The Wall Street or US market closed higher as the US Fed’s favourite inflation gauge’s reading came around investor’s expectations. The Dow Jones Industrial Average soared to its best day of 2024. It jumped 574.84 points or 1.51% to 38,686.32. The S&P 500 climbed 0.80% to 5,277.51. However, the tech-heavy Nasdaq Composite pulled back 0.01% to end at 16,73.02.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded down, 0.10% at 104.52.
Crude Oil
WTI crude prices were trading at $77.03 down by 0.19%, while Brent crude prices were trading at $81.08 down by 0.30%, on Monday morning.
Asian Markets
Asian markets opened higher on Monday morning as investors await a private survey on China’s manufacturing sector. Investors will also look at India’s general elections exit polls suggesting PM Narendra Modi for a third consecutive term, which is rare. Japan’s Nikkei 225 was trading up 1.36% trading at 39,010. The Asia Dow was trading 1.42% higher at 3,442.05. However, Hang Seng was down 0.83% to trade at 18,079.61. The benchmark Chinese index Shanghai Composite was trading flat at 0.01% down to 3,087.
FII, DII Data
Foreign institutional investors (FII) bought shares net worth Rs 1,613.24 crore. Similarly, domestic institutional investors (DII) bought shares net worth Rs 2,114.17 crore on May 31, 2024, according to the provisional data available on the NSE.
Technical View
“The exit polls are predicting a favourable scenario for the Indian markets, with NDA expected to secure around 350-360 seats when counting concludes on 04 June. We anticipate Indian equities to rise over the next 3-4 days, with the Nifty reaching a new all-time high this week. We expect the Nifty to reach approximately 23,200-23,300 levels during this period. Additionally, we foresee the India 10-year yield reaching 6.9% and the Rs appreciating to 82.75. We believe investors can buy the gap up on Monday, as the above scenario unfolds, with particular emphasis on PSEs, and defence and infrastructure companies,” said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, which is a SEBI-registered multi-asset PMS & Cat III AIF expert.
Bank Nifty Outlook
On Friday, the Bank Nifty was an outperforming sector and it was also partially responsible for supporting Nifty during last week. “We believe that as long as Bank Nifty is holding above 48,000 Mark, it is likely to re-test the crucial resistance zone of 49,950-50,000 (Previous ATH) on the higher side. On the downside, the support zone lies at 48,400-500 / 48,000 while the resistance is seen at 49,150 / 49,650-700,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
