Nifty to top 19,600 or slip in trade- See GIFT Nifty, FII data, crude, F&O ban, more before market opens

Nifty to top 19,600 or slip in trade? See GIFT Nifty, FII data, crude, F&O ban, more before market opens

GIFT Nifty traded 0.05% lower during Wednesday’s early trading session at 19,660, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Indian equity indices NSE Nifty 50 and BSE Sensex closed in the green on Tuesday, extending the two-day gaining streak. Nifty 50 ended at 19,574.90, adding 0.24% while Sensex rose 150 points to close at 65,780.26.`

“Strong domestic factors are providing crucial support for Indian equities, allowing them to maintain their strength despite attempts by weak global peers to disrupt the mood. India’s service PMI remains robust at 60.2, indicating sustained demand even in the face of inflationary pressures. Notably, small and mid-cap stocks have been standout performers, with both indices reaching all-time highs. Conversely, the weak Chinese service PMI has cast a shadow on hopes of an economic rebound in China, impacting global market sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Asian-Pacific markets traded in the red on Wednesday. Chinese indices faced a slight downturn, with the Shanghai Composite experiencing a 0.6% decrease and the Shenzhen Component declining by 0.53%. Over in Japan, the Nikkei-225 saw a modest dip of 0.31%. Meanwhile, Hong Kong’s Hang Seng index took a more substantial hit, dropping by 1.28%. South Korea’s KOSPI also experienced a decrease, albeit a smaller one, down by 0.32%.

Crude Oil

Oil prices ticked up in early Asian trade on Wednesday after rising over 1% in the previous session, as markets worried about a supply shortage after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 1,725.11 crore, while domestic institutional investors (DII) bought shares worth net Rs 1,077.86 crore on 5 September, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Balrampur Chini Mills, Delta Corp, Indiabulls Housing Finance, India Cements, Hindustan Copper and BHEL securities on its F&O ban list for 6 September. 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 has witnessed a day of consolidation. It consolidated within a narrow 250 point range. Overall, we believe that this consolidation has come after a sharp run up which is likely to break out on the upside over the next few trading sessions. Momentum indicator has a positive crossover which is a buy signal. Thus, we can expect trending moves on the upside. On the upside we expect targets of 44900 – 45000 from short-term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“After moving above the crucial hurdle of a down sloping trend line at 19,450 levels on Monday, the Nifty continued its upside momentum on Tuesday, without disturbing an upside breakout of the resistance. Nifty is currently placed at another resistance of 19,600 levels and one may expect this to be taken out soon on the upside. The next upper levels to be watched are around 19,800 and immediate support is placed at 19,450 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

(With agency inputs.)