Will Nifty continue to trade above 19800 or fall in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty continue to trade above 19800 or fall in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded down marginally 14.5 points, or 0.07%, at 19,797, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously on Tuesday, NSE Nifty 50 gained 0.40% to settle at 19,811.50, while BSE Sensex added 261.16 or 0.39% to 66,428.09.

“The market’s gap-up opening yesterday, offsetting the losses of the past three days, indicates an optimism over the ongoing Q2 earnings despite concerns about the Middle East and subdued start by the IT sector. The upward trend was broad-based with particular upside in Banking, Oil & Gas and FMCG sectors. However, some profit-taking was evident as the day concluded. FIIs continue to withdraw funds due to the rise in US bond yields,” said Vinod Nair, Head of Research at Geojit Financial Services.

Key things to know before share market opens on October 18, 2023Wall Street

Wall Street’s major indexes ended broadly in red on Tuesday. The tech-heavy Nasdaq Composite slipped 34.24 points, or 0.25%, to 13,533.75. The S&P 500 fell 0.43 points, or 0.01%, to 4,373.20, while the Dow Jones Industrial Average added 13.11 points, or 0.04%, to 33,997.65.

US Dollar

US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded up merely 0.02% at 106.27.

Crude Oil

WTI crude prices are trading at $88.62, up 2.2%, while Brent crude prices are trading at $91.71, up 2.01%, on Wednesday morning.

Asian Market

Shares in the Asia-Pacific region are trading red on Wednesday morning. The Asia Dow is trading down 0.20%, the benchmark Chinese index, the Shanghai Composite, is down 0.38% and Japan’s Nikkei 225 is down 0.47%. Meanwhile, Hong Kong’s Hang Seng index is also down 0.40%.

FII, DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 263.68 crore, while domestic institutional investors (DII) added shares worth net Rs 112.55 crore on October 17, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added SAIL, Balrampur Chini Mills, BHEL, Indiabulls Housing Finance, India Cements, Delta Corp, GNFC, Hindustan Copper, Manappuram Finance, and MCX India to its F&O ban list for October 18, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities, said, “the market started to gap up following strong global sentiment and has so far remained in strength. The short-term trend remains strong as the index sustains above critical moving averages on the daily timeframe. A ‘buy on dips’ strategy is favored as long as it remains above 19,550. On the higher end, it might move towards 20,000-20,200.”

Bank Nifty Outlook

On Tuesday, the Bank Nifty index added 183.60 points or 0.42% to settle at 44,409.50. “Bank Nifty opened gap up however was unable to capitalize on the gains and it corrected intraday. However, the dip is likely to witness buying interest in the zone of 44,350 – 44,300 where support in the form of the key hourly moving averages are placed. we expect the pullback in bank nifty towards 45,000 from short-term perspective. On the downside 44,100 – 44,000 shall act as a crucial support.