Nifty to show trend reversal or sink further in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Nifty to show trend reversal or sink further in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded down 18.5 points, or 0.10%, at 19,305.5, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously on Monday, the NSE Nifty 50 tanked 260.90 points or 1.34% to settle at 19,281.75, while the BSE Sensex shed as much as 825.74 points to 64,571.88.

“Markets started the week on a feeble note and lost nearly one and a half percent. After the flat start, the Nifty gradually inched lower and settled around the day’s low at 19,281.75 level. The selling pressure was widespread wherein metal and realty were among the top losers. However, a sharp cut in the broader indices caught the participants completely off-guard and both midcap and smallcap lost in the range of 2.9%-3.8%,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

Key things to know before share market opens on October 25, 2023Wall Street

Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally, reported Reuters.

The tech-heavy Nasdaq Composite gained 121.55 points, or 0.93%, to 13,139.88. The S&P rose 30.64 points, or 0.73%, to 4,247.68, while the Dow Jones Industrial Average added 204.97 points, or 0.62%, to 33,141.38.

US Dollar

US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded up 0.03% at 106.24.

Crude Oil

WTI crude prices are trading at $83.49, down 0.30%, while Brent crude prices are trading at $87.92, down 0.17%, on Wednesday morning.

Asian Market

Shares in the Asia-Pacific region are trading green on Wednesday morning. The Asia Dow is trading up 1.26%, the benchmark Chinese index, the Shanghai Composite, is down 0.95% and Japan’s Nikkei 225 is up 1.12%. Meanwhile, Hong Kong’s Hang Seng index is also up 2.12%.

FII, DII Data

Foreign institutional investors (FII) added shares worth net Rs 252.25 crore, while domestic institutional investors (DII) added shares worth net Rs 1,111.84 crore on October 23, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added RBL Bank to its F&O ban list for October 25, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts we can observe that the Nifty has breached the previous swing low of 19333 it touched in first week of October and has closed below that indicating a breakdown. Weekly, daily and hourly momentum indicator has a negative crossover which is a sell signal. Thus, both price and momentum indicator is suggesting a further decline. On the downside the Nifty is likely to drift towards 19,000 from short-term perspective. On the way up 19,500 – 19,530 shall act as an immediate hurdle zone as per the principle of role reversal.”

Bank Nifty Outlook

On Monday, the Bank Nifty index shed 571.85 points to settle at 43,151.20. “The bears in the Bank Nifty decisively broke through the critical support level of 43,500, confirmed by a closing basis breach. The index continues to maintain a “sell on rise” approach, with formidable resistance observed at the 44,000 level, which coincides with the highest open interest on the call side. The next support on the downside is situated within the range of 42,800 to 42,600. If this level fails to hold, it may trigger further declines towards the 42,000 mark,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.