Will Nifty show a trend reversal or sink further- See GIFT Nifty, FII data, crude, F&O ban, more before market opens

Will Nifty show a trend reversal or sink further? See GIFT Nifty, FII data, crude, F&O ban, more before market opens

GIFT Nifty traded flat at 19,434.5, down marginally 0.08% during Wednesday’s early trading session, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Tuesday, the benchmark domestic indices settled in negative territory. The NSE Nifty 50 fell 0.56% to settle at 19,528.75, while the BSE Sensex tumbled 316.31 points to 65,512.10.

“Consolidation continued given the rising US bond yields and dollar index, prompting FIIs to pull funds. While the moderation in oil prices may provide respite on the downside. Infrastructure activity indicates an acceleration led by the rise in core sector output. The auto stocks declined due to mixed bag monthly data, while a near-normal monsoon will aid positive sentiment for consumption in the near term,” said Vinod Nair, Head of Research at Geojit Financial Services.

Crude Oil

Oil prices are trading lower on Wednesday. WTI crude prices are trading at $89.16, down 0.08%, while Brent crude prices are trading at $90.80 down 0.14%.

Asian Market

Shares in the Asia-Pacific region are trading broadly in red on Wednesday morning. The Asia Dow is trading down 1.54%, whereas the benchmark Chinese index, the Shanghai Composite, is up 0.10%, while Japan’s Nikkei 225 is down 1.98%. Meanwhile, Hong Kong’s Hang Seng index is down 0.84%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 2,034.14 crore, while domestic institutional investors (DII) added shares worth net Rs 1,361.02 crore on October 3, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Indiabulls Housing Finance to its F&O ban list for October 4, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Rupak De, Senior Technical analyst at LKP Securities said, “The Nifty ended the session with a selling pressure following a volatile trading day. Towards the downside, the index found support at the ascending trendline on the daily chart. The sentiment looks pessimistic for the short term. Looking ahead, the level of 19,480 is expected to serve as a pivotal ‘make or break’ point. If there is a decisive decline below 19,480, it might trigger heavy selling in the market. On the upside, 19,600 will continue to remain a significant resistance level.”

Bank Nifty Outlook

On Tuesday, the Bank Nifty index shed 185.50 points or 0.42% to 44,399.05. “The pullbacks towards the key hourly moving averages are being sold into and hence until the bank Nifty does not sustain above 44,700 – 44,800 zone we can expect the weakness to continue. On the downside the Bank Nifty can slip towards 44,000 – 43,800,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.