Nifty to reclaim 20000 or continue to fall in trade- See GIFT Nifty, FII data, crude, F&O ban, more before market opens

Nifty to reclaim 20000 or continue to fall in trade? See GIFT Nifty, FII data, crude, F&O ban, more before market opens

GIFT Nifty traded flat at 19,678, up by merely 16 points or 0.08% during Friday’s early trading session, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Thursday, the NSE Nifty 50 closed below the 20,000 mark at 19,679, down almost a per cent. The Sensex too closed well below 67,000 at 66,230.24, down a whopping 500 plus points. Some of the key stars of last week like banks, autos and PSU entities saw broadbased selling.

“The market fell by 2.2% in the last three days amid profit booking at higher levels. Uncertain global cues and persistent selling by FIIs are likely to keep markets under pressure in the near term. It would be better to prefer defensive sectors for some time until the market stabilizes. Investors would also take cues from the Bank of England’s interest rate decision,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

The tech-heavy Nasdaq Composite plunged 245.14 points, or 1.82%, to 13,223.99. The Dow Jones Industrial Average tanked 370.46 points, or 1.08%, to 34,070.42 and the S&P 500 tumbled 72.2 points, or 1.64%, to 4,330.

Crude Oil

Oil prices were on a surge on Friday; Brent crude prices were trading up by 0.23% at $93.51 per barrel, while WTI crude prices were trading at $89.91, up by 0.31%.

Asian Market

Shares in the Asia-Pacific region were trading in the red on Friday. The Asia Dow was down by 0.74%, whereas the benchmark Chinese index, the Shanghai Composite, tumbled 0.77%, while Japan’s Nikkei 225 tanked 1.04%. Meanwhile, Hong Kong’s Hang Seng index plunged 1.29%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 3,007.36 crore, while domestic institutional investors (DII) added shares worth net Rs 1,158.14 crore on September 21, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Balrampur Chini Mills, BHEL, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Manappuram Finance, Punjab National Bank and Zee Entertainment Enterprises to its F&O ban list for September 22, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Rupak De, Senior Technical analyst at LKP Securities, said, “Nifty extended its decline as the benchmark index slipped towards 19,700. The Nifty index closed below the 20EMA, signaling a diminishing bullish sentiment. Weakness appears evident with a bearish crossover in the RSI. Selling on rallies remains the favored strategy as long as it stays below 20,000. On the downside, support is situated in the range of 19,700- 19,630.”

Bank Nifty Outlook

The Bank Nifty index shed as many as 760.75 points to end Thursday’s trading session at 44,623.85. “The daily momentum indicator has a negative crossover which is a sell signal. Thus, both price and momentum indicator are suggesting a further decline. On the downside we expect it to target levels of 44,500 – 44,360 which coincides with the 20 week moving average and the 78.6% fibonacci retracement level,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, while commenting on the technical outlook of the Bank Nifty index.