Will profit booking in markets continue and Nifty hover around 21000- 8 things to know before the share market opens

Will profit booking in markets continue and Nifty hover around 21000? 8 things to know before the share market opens

GIFT Nifty traded up 47.5 points or 0.23% at 21,072.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Monday, the NSE Nifty 50 dipped 90.70 points or 0.43% to settle at 20,906.40, while the BSE Sensex dropped 377.50 points or 0.54% to 69,551.03.

“Markets remained in a range for yet another session and lost nearly half a percent. After the flat start, Nifty traded muted in the first half however profit taking in heavyweights pushed the index lower as the day progressed. It eventually settled closer to the day’s low at 20,906.40 levels. Most sectors aligned to the move and ended in the red wherein realty, energy and auto were among the top losers. Meanwhile, the broader indices also traded subdued and closed flat to marginally lower,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

Key things to know before share market opens on December 13, 2023Wall Street

US stocks closed at fresh highs of the year on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Federal Reserve, as investors awaited the central bank’s last policy decision of the year on Wednesday, reported Reuters. The tech-heavy Nasdaq Composite advanced 100.91 points or 0.70% to 14,533.40 and the S&P 500 added 21.26 points or 0.46% to 4,643.70. The Dow Jones Industrial Average rose 173.01 points or 0.48% to 36,577.94.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.03% at 103.84.

Crude Oil

WTI crude prices are trading at $68.43 down 0.17%, while Brent crude prices are trading at $73.06 down 0.25%, on Wednesday morning.

Asian Markets

Shares in the Asia-Pacific region are trading on a mixed note on Wednesday Morning. The benchmark Chinese index Shanghai Composite is down 0.50% and Hong Kong’s Hang Seng index is trading down 0.77%, while the Asia Dow is trading up 0.24%, and Japan’s Nikkei 225 is up 0.52%.

FII, DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 76.86 crore, while domestic institutional investors (DII) added shares worth net Rs 1,923.32 crore on December 12, 2023, according to the provisional data available on the NSE. 

F&O Ban

The NSE has added India Cements, Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, National Aluminium Company, SAIL and Zee Entertainment to its F&O ban list for December 13, 2023.

Technical View

Commenting on the technical outlook of the Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts we can observe that the Nifty has closed in the red and the negative divergence on the hourly charts is playing out. The Nifty is likely to consolidate over the next few trading sessions. On the downside crucial support is placed at 20,850 – 20,800 while resistance is placed at 20,973 – 21,000. Overall, the trend is positive, and the current dip should be used as a buying opportunity.”

Bank Nifty Outlook

Bank Nifty index ended lower by 216.70 points or 0.46% to settle at 47,097.55 on Monday. “The Bank Nifty index encountered resistance at higher levels, facing selling pressure and struggling to breach the 47,500 mark. The lower-end support for the index is positioned at 46,800, and a decisive break below this level could trigger additional downside movement toward the 46,400 levels. With weekly expiry approaching, heightened volatility is anticipated. Traders are advised to exercise caution and implement strict stop-loss measures on both sides of the market,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.