Will Nifty stay rangebound around 19800- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty stay rangebound around 19800? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded at 19,858 up 8.5 points or 0.04%, indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 gained 89 points or 0.45% to settle at 19,783.40, while the BSE Sensex added 275.63 points or 0.42% to 65,930.78.

“Markets managed to gain nearly half a percent amid volatility, thanks to firm global cues. On the benchmark front, Nifty opened with an upside gap and hovered in a narrow range thereafter. It inched towards the resistance zone of 19,850 but pressure in the banking and IT majors capped the upside and it finally settled at 19,783.40 levels. The broader indices remained dull for the second day in a row however selective buying kept the traders busy,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

Key things to know before share market opens on November 22, 2023Wall Street

US stocks retreated on Tuesday, with the S&P 500 and Nasdaq snapping five-session winning streaks as retailers declined after some disappointing outlooks and as technology shares fell, reported Reuters. The tech-heavy Nasdaq Composite dropped 84.55 points or 0.59% at 14,199.98. The S&P 500 slipped 9.19 points or 0.20% at 4,538.19 and the Dow Jones Industrial Average fell 62.75 points or 0.18% to 35,088.29.

Asian Markets

Shares in the Asia-Pacific region are trading on a mixed note on Wednesday morning. The Asia Dow is trading up 0.26% and Japan’s Nikkei 225 is up 0.33%, while Hong Kong’s Hang Seng index is trading down 0.25% and the benchmark Chinese index Shanghai Composite is down 0.01%.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.07% at 103.39.

Crude Oil

WTI crude prices are trading at $77.92 up 0.19%, while Brent crude prices are trading at $82.61 up 0.19%, on Wednesday morning.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 455.59 crore, while domestic institutional investors (DII) added shares worth net Rs 721.52 crore on November 21, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added BHEL, Hindustan Copper, Indiabulls Housing Finance, Chambal Fertilisers & Chemicals, Delta Corp, India Cements, Manappuram Finance, RBL Bank, MCX India, NMDC and Zee Entertainment to its F&O ban list for November 22, 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 since last three trading sessions the Nifty is trading within the range 19,875 – 19,627. On the downside the Nifty is approaching the crucial support zone of 19,650 – 19,600 where multiple support parameters in the form of the 40 hour moving average and the lower end of the rising channel is placed. We expect Nifty to hold on to this support. The hourly momentum indicator has a negative crossover and has reached the equilibrium line indicating that the correction has matured and can start a new cycle on the upside. In terms of levels, 19,610 – 19,650 is the crucial support zone while 19,900 – 19,930 is the immediate resistance zone.”

Bank Nifty Outlook

Bank Nifty index gained over 104.20 points or 0.24% to settle at 43,689.15 on Tuesday. “The Bank Nifty index persisted in a sideways momentum, characterized by lower volumes, and remains in close proximity to its 20-day moving average (20DMA). Immediate resistance on the upside is situated at 44,000, marked by higher call writing, and a breakthrough above this level is expected to initiate short-covering moves. On the downside, support is established at 43,300, and a breach below this level may pave the way for a decline towards 42,800,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.