Will Nifty reclaim 20000 or fall further in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty reclaim 20000 or fall further in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded up 23.5 points, or 0.12%, at 19,698.50, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. On Thursday, the NSE Nifty 50 slipped 17.35 points or 0.09% to settle at 19,794, while the BSE Sensex shed 64.66 points to 66,408.39.

“The underwhelming result of the IT major and its lacklustre near-term prospects exerted downward pressure on the IT sector. Nevertheless, the broad market exhibited strength, primarily in anticipation of healthy overall Q2 results led by expansion in India’s operating profit as volume demand is sustained despite global slowdown. Global trend was positive attributable to the favourable UK GDP figures and anticipation of a moderation in US CPI inflation, which may influence the FED’s future actions,” said Vinod Nair, Head of Research at Geojit Financial Services.

Crude Oil

WTI crude prices are trading at $83.52, up 0.45%, while Brent crude prices are trading at $86.45, up 0.52%, on Friday morning.

Asian Market

Shares in the Asia-Pacific region are trading in the red on Friday morning. The Asia Dow is trading down 1.09%, whereas the benchmark Chinese index, the Shanghai Composite, is up 0.62%, while Japan’s Nikkei 225 is also up 0.19%. Meanwhile, Hong Kong’s Hang Seng index is up 1.39%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,862.57 crore, while domestic institutional investors (DII) added shares worth net Rs 1,532.08 crore on October 12, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added BHEL, Delta Corp, Sun TV Network, Balrampur Chini Mills, Hindustan Copper, Indiabulls Housing Finance, India Cements, L&T Finance Holdings, Manappuram Finance, and Punjab National Bank to its F&O ban list for October 13, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts we can observe that the Nifty has been consolidating after a sharp rally of 350 points in the previous couple of trading sessions. This consolidation is a healthy sign and shall set the floor for the next leg of upmove. The hourly momentum indicator has a negative crossover which can lead to more consolidation and incase of a dip towards 19,750 – 19,730 zone it should be used as a buying opportunity. On the downside the gap area formed in the range 19,718 – 19,757 is likely to act as a short-term support and on the upside the rally has potential to extend till 19,884 – 20,030.”

Bank Nifty

The Bank Nifty index added 82.30 points or 0.18% to settle at 44,599.20. “The Bank Nifty index continued its consolidation phase, encountering resistance at 44,700 and support at 44,400. The overall market sentiment remains bullish, and any dips should be considered as opportunities to initiate fresh long positions. The target is 45,000, where the highest open interest exists on the call side. A break above 44,700 is expected to accelerate upward momentum, driven by fresh short-covering activities,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.