Will Nifty rise or fall under 19350- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty rise or fall under 19350? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.03% loss during Wednesday’s early trading session, with a value of 19,561.5 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended Wednesday’s session in the red. The Nifty 50 sank 0.28% to 19,384.30 and Sensex tumbled 223.94 points to 65,393.90.

“The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. While optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of higher mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Thursday. China’s Shanghai Composite added 0.68% in trade, while Japan’s Nikkei 225 soared 1.18%. Hong Kong’s Hang Seng index jumped by 2.33% while South Korea’s Kospi was higher by 0.96%. The Taiwan Weighted index recorded a rise of 1.34%.

Crude Oil

Oil prices rose in early Asian trade on Thursday after U.S. inflation and economic data sparked hopes the Federal Reserve may have fewer interest rate hikes in store for the world’s biggest economy.

FII/DII Data

Foreign institutional investors (FII) net offloaded shares worth net Rs 1,242.44 crore, while domestic institutional investors (DII) net purchased shares worth net Rs 436.71 crore on 12 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Hindustan Copper, Punjab National Bank, Manappuram Finance, Indiabulls Housing Finance, ZEE, and India Cements securities on its F&O ban list for 13 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

“The bears continue to dominate the market, as the index broke below the support level of 44,800. This suggests a bearish sentiment in the index.The next support level on the downside is located at 44,500 levels. If the index dips towards this level, it may present an opportunity for traders to initiate long positions, expecting a potential bounce from this support,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“Positive chart pattern like higher tops and bottoms is intact as per daily time frame chart and present weakness could be in line with new higher bottom formation at the highs. On a move below 19,300, the market is likely to find another important support of 19,100-19,000 levels. Fresh buying interest could only emerge on a decisive move above 19,500 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.