Will Nifty continue to add gains or fall in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty continue to add gains or fall in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded flat at 19,792.50, marginally up 0.08%, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously on Tuesday, the NSE Nifty 50 rose 0.91% to settle at 19,689.85, while the BSE Sensex added as much as 566.97 points to 66,079.36.

“From today the Q2 earnings season would start off with TCS declaring its numbers. We expect robust 21% earnings growth for Nifty in Q2, which would be driven by domestic cyclicals (BFSI & Auto). So lot of stock specific action would be seen over next 45 days as the earnings get declared. On the index front, Nifty might continue with its consolidation with bouts of volatility as it would track the geo-political development, US bond yields and oil prices amidst result announcements,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial.

Crude Oil

WTI crude prices are trading at $86.04, up marginally 0.04%, while Brent crude prices are trading at $87.78, up 0.15%, on Wednesday morning.

Asian Market

Shares in the Asia-Pacific region are trading in the green on Wednesday morning. The Asia Dow is trading up 1.03%, whereas the benchmark Chinese index, the Shanghai Composite, is up 0.25%, while Japan’s Nikkei 225 is also up 0.40%. Meanwhile, Hong Kong’s Hang Seng index is up 1.55%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,005.49 crore, while domestic institutional investors (DII) added shares worth net Rs 1,963.34 crore on October 10, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Delta Corp, Indiabulls Housing Finance, L&T Finance Holdings, Manappuram Finance, MCX India, and Punjab National Bank to its F&O ban list for October 11, 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 witnessed a trend reversal today. It has started to form a higher bottom and also breached the previous swing high confirming the reversal. The momentum indicator still has a negative crossover however it is likely to align with the price action soon. The pullback is likely to continue till 19,778 which is the 20-day moving average (19,770). Beyond that, it has the potential to stretch higher till 19,883 which is the 61.82% Fibonacci retracement level of the entire fall from 20,222 till 19,333. On the downside, the swing low of 19,480 is likely to act as a short-term support.

Bank Nifty Outlook

On Tuesday, the Bank Nifty index added as much as 477.65 points or 1.08% to settle at 44,360.15. “The bulls made a strong comeback, defending the support zone of 44,000-43,800, where fresh put writing is evident. The next immediate hurdle is positioned at 44,500, and a break above this level is expected to trigger further short covering, potentially pushing the index towards the 45,000 mark. Additionally, the momentum indicator RSI has provided a positive crossover, confirming a buy signal,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.