Will Nifty scale new highs ahead of Diwali- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty scale new highs ahead of Diwali? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded at 19,455.5 up 18.5 points or 0.15%, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Friday, the NSE Nifty 50 advanced 97.35 points or 0.51% to settle at 19,230.60, while the BSE Sensex added as much as 282.88 points to 64,363.78.

“Markets extended gains for yet another session and rose nearly half a percent. After the gap-up start, Nifty remained in a narrow range for most of the day and finally settled at 19,226.05 levels. Nifty has penetrated the resistance zone after two days of advance and tested the immediate hurdle of 100 EMA around 19,276 as well. We reiterate a cautious view on the index and suggest awaiting a decisive break above 19,400 for a sustained recovery else the up move would fizzle out. However, there is no shortage of stock-specific opportunities so traders should maintain their focus on stock selection,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

The tech-heavy Nasdaq Composite surged 132.31 points or 1.28% to 10,475.25. The S&P 500 rose 50.66 points or 1.36% to 3,770.55, while the Dow Jones Industrial Average climbed 401.97 points or 1.26% to 32,403.22.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.08% at 105.10.

Crude Oil

WTI crude prices are trading at $80.98 up 0.52%, while Brent crude prices are trading at $85.20 up 0.37%, on Monday morning.

Asian Market

Shares in the Asia-Pacific region are trading in the green on Monday morning. The Asia Dow is trading up 1.63%, Japan’s Nikkei 225 is up 2.41%, the benchmark Chinese index Shanghai Composite is up 0.62% and Hong Kong’s Hang Seng index is also trading up 1.58%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 12.43 crore, while domestic institutional investors (DII) added shares worth net Rs 402.69 crore on November 3, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Gujarat Narmada Valley Fertilizers and Chemicals to its F&O ban list for November 6, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Jay Thakkar – Head – Alternate Research, Capital Market Strategy at Sharekhan by BNP Paribas, said,”The Nifty closed in the positive territory for the week, however, it was not able to surpass its immediate resistance of 19,333.60 levels as the high made this week was 19,276.25. This miss still keeps open the possibility of this been a wave 4 bounce, however, above 19333.60 it will negate the same and thereafter this bounce will be confirmed as Wave (X) bounce. The Nifty has retraced between 38.2% to 50% of its previous fall from 19,849.75 to 18,837.85 and it can further retrace until 19,400 levels till 18,973.70 levels are held.

Bank Nifty Outlook

Bank Nifty index added 301.05 points or 0.70% to 43,318.25 on Friday. “”The Bank Nifty index had a strong opening but went into consolidation at higher levels. It encountered difficulty surpassing the immediate resistance level of 43,500, where a significant amount of call writing was observed. The lower-end support for the index is situated at 42,800, and a breach below this level could intensify selling pressure,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.