GIFT Nifty down 27 points: Trade setup for 1st trading session of 2024 on NSE, BSE

Domestic benchmark indices are set to kick-off 2024 on a muted note as Gift Nifty signals to open in red. New year celebrations across the globe kept most Asian markets shut, while western world will also observe a public holiday on Monday. Thin trading volumes may dent the sentiments. Back home, traders are gearing up for the Q3 earnings by India Inc due later this month, followed by an interim union budget ahead of general elections 2024. Here's what all you know to know before the opening bell:

Nifty outlook
Rajesh Bhosale, Technical Analyst, Angel One said that it is advised not to adopt an aggressive stance. Instead, booking profits at higher levels is recommended. Any market dip should be viewed as a buying opportunity unless there are clear indications of a major price correction.

"Immediate support is observed around 21,600 and 21,500, while strong support lies around 21300-mark. Although prices are in uncharted territory with no prominent resistance visible, 21850 followed by 22,000 presents an immediate hurdle, considering the overbought conditions. Traders should monitor these levels and adjust their strategies accordingly," he said.

Nifty Bank outlook
Rupak De, Senior Technical Analyst at LKP Securities said that Nifty Bank slipped lower, forming a small red-bodied candle on the daily chart. Resistance is situated at 48300 on the higher end. As long as the index stays below 48300, the trend could lean towards favoring the bears.

"Moreover, a decisive drop below 48000 might drive the index below 47500. Conversely, a decisive move above 48300 could propel the index towards 48800-49000 on the higher end," he said.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 27 points, or 0.12 per cent, lower at 21,807.50, hinting at a negative start for the domestic market on Monday.

Wall Street shares end slightly lower
US stocks closed modestly lower on Friday, the last trading day of 2023, capping a robust year-end rally as investors eyed easier monetary policy in the year ahead. The stock market has seen remarkable upward momentum in the closing months of the year, powering all three major indexes to monthly, quarterly and annual gains. The Dow Jones Industrial Average fell 20.56 points, or 0.05 per cent, to 37,689.54, the S&P 500 lost 13.52 points, or 0.28 per cent, to 4,769.83 and the Nasdaq Composite dropped 83.78 points, or 0.56 per cent, to 15,011.35.

Stocks in F&O ban
Only one stock- Hindustan Copper- has been put under the F&O segment ban by the National Stock Exchange (NSE) for Monday, January 1, 2024. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment.

FPIs buy shares worth Rs 1,459 crore
Provisional data available with NSE suggest that FPIs were net buyers of domestic stocks to the tune of 1,459.12 crore on Friday. On the other hand, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 554.39 crore. Overseas investors pumped in Rs 66,135 crore in the domestic equity markets in December 2023, while they bought local equities worth Rs 1,71,107 in the entire year 2023.

Rupee gains 4 paise against US dollar
The rupee appreciated 4 paise to settle at 83.16 against the US dollar on the last trading day of 2023, helped by a weak greenback against major rivals overseas and renewed foreign capital inflows amid lower crude oil prices. However, subdued domestic equity markets and increased month-end dollar demand from importers restricted the rise in the domestic unit, traders said.


Note: With inputs from PTI, Reuters and other agencies

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