Will the Nifty continue its relief rally and trade above 22,500, or will it consolidate? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening Tuesday. Here is all you need to know before the market opens.

GIFT Nifty traded up by 73.50 or 0.33% at 22.458 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended up by 189.40 points or 0.86% to settle at 22,336.50 while the BSE soared 560.29 points or 0.77% to 73,648.62.

Markets strengthened recovery and gained nearly a percent, in continuation to Friday’s rebound. Firm global cues triggered an upbeat start, followed by a range bound for most of the session. However, buying in select heavyweights in the final hour further boosted the gains.  Eventually, it settled around the day’s high at 22,336.40 level. All the key sectors contributed to the move wherein auto, banking and FMCG were among the top gainers. The broader indices also traded in sync with the move and gained in the range of 1%-1.4%,” said  Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.

Mishra also added that, Participants are taking comfort from stability on the global front while earnings are offering mixed indications so far. On the index front, Nifty has reclaimed its short term moving average i.e. 20 DEMA but sustainability is critical to inch towards the record high. Amid all, traders should continue with a hedged approach and stay focused on stock selection.

Key things to know before share market opens on April 23, 2024

Wall Street

U.S. stocks rebounded on Monday, with Corporate America kicking off the busiest week for first-quarter earnings that will be key in shaping the outlook for equities, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 152.89 points or 1% at 15,434.90. The S&P 500 gained by 39.48 points or 0.78% at 5,006.71, while the Dow Jones Industrial Average ended higher by 253.58 points or 0.57% at 38,239.98.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.03% at 106.09.

Crude Oil

WTI crude prices are trading at $82.34 up by 0.15%, while Brent crude prices are trading at $87.39 up by 0.12%, on Tuesday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in positive territory on Tuesday morning. The Asia Dow is trading up by 1.60%, where as the Japan’s Nikkei 225 is trading in green, up by 0.45%, Hong Kong’s Hang Seng index is ended higher by 1.99% and the benchmark Chinese index Shanghai Composite is ended down by 0.67%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 2,915.2 crore, while domestic institutional investors (DII) bought shares worth net Rs 3542.9 crore on April 22, 2024, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Biocon, Hindustan Copper, Idea, Piramal Enterprises, SAIL, and Zee Entertainment Enterprise in F&O on April 23, 2024.

Technical View

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Bulls continued to dominate the market as the Nifty gained for the second consecutive session. The trend has turned positive after reclaiming a critical near-term moving average. Sentiment is expected to remain favorable for bulls as long as it stays above 22,150. On the upside, the index could potentially move towards 22,600-22,700. Conversely, a drop below 22,150 could lead to consolidation in the index.

Bank Nifty Outlook

The Bank Nifty index exhibited continued bullish strength as it witnessed follow-up buying from lower levels. Currently, it is approaching a crucial resistance level around 48000, marked by the highest open interest on the call side. A decisive break above this level is anticipated to trigger further short covering moves. Meanwhile, immediate support lies at 47600-47500 levels, suggesting that any dip towards this support zone could present a buying opportunity,  said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.