Will Nifty rise above 19000 or sink further in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty rise above 19000 or sink further in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded up 32.5 points or 0.17% at 19,217.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Wednesday, the NSE Nifty 50 dropped 90.45 points or 0.47% to settle at 18,989.15, while the BSE Sensex shed as much as 283.60 points to 63,591.33.

“Markets edged lower for the second consecutive session and lost nearly half a percent. The tone was subdued from the beginning and Nifty remained under pressure till the end to finally close at 18,988 levels. Meanwhile, mixed trend on the sectoral front kept the traders busy wherein metal, IT and auto were among the losers while realty and pharma closed in the green. The broader indices showed resilience amid the negativity and managed to end on a flat note,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

Key things to know before share market opens on November 2, 2023Wall Street

Wall Street’s major indices closed higher on Wednesday with the Nasdaq’s 1.6% advance leading gains, after the US Federal Reserve kept interest rates unchanged and comments from its top official fueled investor optimism rate hikes were done even though the central bank left the door open for more, reported Reuters.

The tech-heavy Nasdaq Composite soared 210.23 points or 1.64% to 13,061.47. The S&P 500 surged 44.06 points or 1.05% to 4,237.86, while the Dow Jones Industrial Average added 221.71 points or 0.67% to 33,274.58.

US Fed’s speech

The Federal Reserve held interest rates steady on Wednesday but left the door open to a further increase in borrowing costs in a policy statement that acknowledged the US economy’s surprising strength, but also nodded to the tighter financial conditions faced by businesses and households, reported Reuters.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.50% at 106.35.

Crude Oil

WTI crude prices are trading at $81.38 up 1.18%, while Brent crude prices are trading at $85.56 up 1.10%, on Thursday morning.

Asian Market

Shares in the Asia-Pacific region are trading in the green on Thursday morning. The Asia Dow is trading up 1.57%, Japan’s Nikkei 225 is up 1.13%, the benchmark Chinese index Shanghai Composite is up 0.21% and Hong Kong’s Hang Seng index is also trading up 1.69%. 

India Rupee

The Indian rupee fell to a record low in the last minute of trade on Wednesday, on the back of heavy demand for the greenback and elevated U.S. yields ahead of the Federal Reserve’s rate decision due later in the day, reported Reuters. The rupee ended at a record closing low of 83.29 after touching a lifetime low of 83.2950 just before market close. It had ended at 83.25 on Tuesday and touched its previous low of 83.29 in October 2022.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,816.91 crore, while domestic institutional investors (DII) added shares worth net Rs 1,622.05 crore on November 1, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Gujarat Narmada Valley Fertilizers & Chemicals to its F&O ban list for November 2, 2023.

Technical View

Commenting on the technical view of the Nifty 50, Jay Thakkar, Head – Alternate Research, Capital Market Strategy at Sharekhan by BNP Paribas, said, “On the daily chart, the Nifty is trading below the 20-day moving average (DMA) and the 40-DEMA of 19,454 and 19,473 respectively. The momentum indicator has a negative crossover on the daily chart. On the hourly chart, the Nifty is trading in between the 20-hour moving average (HMA) and the 40-HEMA of 19,075 and 19,115 respectively. The momentum indicator has a negative crossover on the hourly charts. The market breadth was positive with 1002 advances and 1462 declines on the National Stock Exchange.”

Bank Nifty Outlook

“The Bank Nifty index formed a doji candle, suggesting a state of indecision at the current levels, with a battle between bulls and bears. Immediate resistance is observed at 43,000, where significant open interest is concentrated on the call side. A breach above this level could trigger short-covering moves towards 43,500. Conversely, the lower-end support is positioned at 42,400, and if it is breached on a closing basis, it may escalate the selling pressure,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.