Nifty likely to trade below 20000- See GIFT Nifty, FII data, crude, F&O ban, more before market opens

Nifty likely to trade below 20000? See GIFT Nifty, FII data, crude, F&O ban, more before market opens

GIFT Nifty traded flat at 19,621 up merely 0.07%, during Wednesday’s early trading session, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. The benchmark domestic indices ended Tuesday’s trading session in negative territory. The NSE Nifty 50 slipped 9.85 points to 19,664.70, while the BSE Sensex fell 0.12% to 65,945.47.

“Markets are likely to remain under pressure amid a sharp surge seen in U.S. 10-year treasury yields to 16-year highs of 4.5%. Also mounting concerns over China’s real estate sector, and FIIs offloading in domestic equities dampened the sentiments. However, momentum is seen in Auto and defensive sectors like FMCG. Auto sector is expected to remain in focus going ahead as OEMs are likely to increase output by 25% amid a build-up in orders ahead of the festive season,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Key things to know before share market opens on September 27, 2023Wall Street

Wall Street ended Tuesday’s trading session in negative territory. The tech-heavy Nasdaq Composite tumbled 207.71 points, or 1.57%, to 13,063.61. The Dow Jones Industrial Average plunged 388 points, or 1.14%, to 33,618.88 and the S&P 500 tanked 1.47%, to 4,273.53

Crude Oil

Oil prices are on a surge on Wednesday. Brent crude prices are trading up 0.82% at $94.75 per barrel, while WTI crude prices are trading at $91.15, down 0.84%.

Asian Market

Shares in the Asia-Pacific region are trading mixed on Wednesday morning. The Asia Dow is trading up 0.15%, whereas the benchmark Chinese index, the Shanghai Composite, is up 0.27%, while Japan’s Nikkei 225 is down 0.80%. Meanwhile, Hong Kong’s Hang Seng index is up 0.38%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 693.47 crore, while domestic institutional investors (DII) added shares worth net Rs 714.75 crore on September 26, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Canara Bank, Hindustan Copper, Delta Corp, India Cements, Balrampur Chini Mills and Indiabulls Housing Finance to its F&O ban list for September 27, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Shrikant Chouhan, Head of Research (Retail), Kotak Securities, said, “Technically, the Nifty has formed a inside body candle indicating continuation of a range bound trend in the near future. For day traders, 19,735 would be the immediate resistance level while 19,620 could act as a key support zone. Above 18,735, the index could move up till 19,780 – 19,800. On the other hand, below 19,620 the market could slip till 19,550 – 19,520.”

Bank Nifty Outlook

The Bank Nifty index shed as many as 141.90 points to 44,624.20. “Considering the oversold nature of the Bank Nifty we are expecting a pullback over the next few trading sessions. On the upside the pullback is likely towards 45,000 – 45,200. On the hourly charts the momentum indicator has a positive crossover which is a buy signal and the positive divergence suggest that the momentum on the downside is weakening,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.