Will Nifty cross 19,600 or bears to drag- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty cross 19,600 or bears to drag? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.13% loss during Monday’s early trading session, with a value of 19,594 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex made new all-time highs and ended Friday’s trading session broadly in the green. Nifty 50 soared 150.75 points to close at 19,564.50 after making a new 52-week high of 19,595.35 intraday.

“The controlled inflation in the US has instilled optimism among investors that a 25-bps rate hike would be adequate to stabilise the US economy. This improved prospect has contributed to the strong buying of Indian IT stocks despite muted Q1 earnings. Furthermore, the broad-based rally in the domestic market was supported by India’s consecutive third month decrease in wholesale prices, along with the positive involvement of FIIs,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the red on Monday. China’s Shanghai Composite and Shenzhen Component tanked 1.07% and 0.62% respectively, while Japan’s Nikkei 225 slipped 0.09%. South Korea’s Kospi was lower by 0.1%. The Taiwan Weighted index recorded a rise of 0.18%.

Crude Oil

Oil prices dipped for a second session on Monday after Libya resumed production over the weekend while China, the world’s largest crude importer, is expected to release economic data showing that its post-pandemic recovery is fizzling out.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth net Rs 2,636.43 crore, while domestic institutional investors (DII) net sold shares worth net Rs 772.45 crore on 14 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange hasHindustan Copper, Punjab National Bank, Manappuram Finance, Indiabulls Housing Finance, Delta Corp and RBL Bank securities on its F&O ban list for 17 July. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Bank Nifty Outlook

“Bank Nifty is facing significant resistance at 45,000, hindering its upward movement. Support is established at 44,700 on the lower end. The bullish crossover on the momentum indicator RSI suggests positive momentum. Going forward, the index may continue to consolidate with the bands of 44,500-45,000; any decisive breakout on either side may create a directional trend,” said Rupak De, Senior Technical Analyst at LKP Securities.

Technical View

“Nifty is on the verge of breaking out of an eight-day consolidation on the upside. The Nifty has spent a considerable amount of time consolidating and we believe that the base is in place for the next leg of up-move. On the upside immediate resistance is placed in the zone of 19,670 – 19,720 while crucial support is placed in 19,400 – 19,360,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.