Will Nifty hold 21,500 levels or fall further- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty hold 21,500 levels or fall further? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Tuesday. Here is all you need to know before the market opens.

GIFT Nifty traded up by 126.50 points or 0.59% at 21,703 indicating positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 dipped 197.80 points or 0.91% to settle at 21,513, while the BSE Sensex ended lower by 670.93 points or 0.93% to 71,355.22.

Mishra also added that, Nifty has engulfed the gains of the last three sessions and may slip further towards the support zone of 21200-21300 levels. The move shows that participants are in the profit taking mood citing a dip in the US markets and caution ahead of the earnings. Amid all, traders should keep a check on aggressive longs and accumulate quality stocks on dips.

Key things to know before share market opens on January 09, 2024Wall Street

A rally in big tech sent U.S. stocks higher at the start of a week that will bring key inflation data and bank earnings, Bloomberg reported. The tech-heavy Nasdaq Composite gained 295.08 points or 2.03% at 14,819.15. The S&P 500 surged by 59.10 points or 1.26% at 4,756.34, while the Dow Jones Industrial Average ended higher by 213.38 or 0.59%.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.01% at 102.20.

Crude Oil

WTI crude prices are trading at $70.74 down by 0.03%, while Brent crude prices are trading at $76.35 up by 0.30%, on Tuesday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in mixed territory on Tuesday morning. The Asia Dow is trading up by 0.38%, Japan’s Nikkei 225 is green, up by 1.58%, Hong Kong’s Hang Seng index is trading down by 1.88% and the benchmark Chinese index Shanghai Composite is trading lower by 1.42%.

FII, DII Data

Foreign institutional investors (FII) bought shares worth net Rs 16 crore, while domestic institutional investors (DII) mopped shares worth net Rs 156 crore on January 08, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Balrampur Chini Mills, Bandhan Bank, Chambal Fertilizer, Delta Corp, Escorts Kubota, Gujarat Narmada Valley Fertilizer and Chemicals, Hindustan Copper, Indian Energy Exchange, India Cements, National Aluminium, Piramal Enterprise, SAIL, and Zee Entertainment to its F&O ban list for January 09, 2024.

Technical View

Commenting on the Technical outlook of Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, Nifty ended the day close to its support at 21,500 and the short-term 14-day moving average, accompanied by a bearish engulfing candlestick pattern. This indicates a change in market sentiment. If 21,500 is breached in closing figures, Nifty may move towards the next support level at 21,200. The support of 21500 if held can see recovery towards 21650 which is the immediate hurdle zone.

Bank Nifty Outlook

“The Bank Nifty bears staged a strong comeback, leading to a breach of the critical support at 47700 on a closing basis. Selling pressure was evident across the banking sector, and a sustained move below 47700 may result in further declines towards the 47000 level. To resume the uptrend, the index must surpass the key resistance at 48300, targeting the 50000 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.