Nifty to snap winning streak or top 19550- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Nifty to snap winning streak or top 19550? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.31% loss during Friday’s early trading session, with a value of 19,488 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. On Thursday, benchmark Indian equity indices Nifty and Sensex hit fresh all-time highs. Nifty soared above 19,500 but pared its gains to settle just shy of the level at 19,497.3, while Sensex ended higher by 0.52% at 65,785.64.

“Foreign investors continue to provide unwavering support to the domestic market, helping to sustain the ongoing rally despite weak global cues. India’s underperformance during the year is expected to reverse moving ahead. The mid- and small-cap segments have outperformed the benchmark index, with realty, oil & gas, power and consumption stocks leading the sectorial rally as provisional & economic data suggest a good Q1FY24 results. However, global markets are displaying a negative trend, influenced by hawkish FOMC minutes and US-China tensions,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the red on Thursday. China’s Shanghai Composite fell 0.18% in trade, trading flat, while Japan’s Nikkei 225 tanked 0.53%. Hong Kong’s Hang Seng index fell by 1% while South Korea’s Kospi was lower by 1.41%. The Taiwan Weighted index recorded a loss of 0.59%.

Crude Oil

Oil prices were largely unchanged on Friday, but set to post weekly gains, as fears of higher U.S. interest rates that could dampen energy demand were offset by signs of tighter supply after a larger-than-expected fall in U.S. oil stocks.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth net Rs 2,641.05 crore, while domestic institutional investors (DII) net sold shares worth net Rs 2,351.66 crore on 6 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has BHEL and Delta Corp securities on its F&O ban list for 7 July. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Bank Nifty Outlook

“The Bank Nifty index has shown a resilient performance as the bulls managed to hold the support level of 45,000, which is considered a crucial make-or-break level for the index.The bears have been active around the 45,500 level. However, if the index successfully surpasses this level on a closing basis, it is likely to witness further upward movement toward the 46,000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“Trending moves are resuming and slowly it is inching higher. We revise the target upwards to 19,900. In terms of levels, 19,300– 19,270 shall act as a crucial support zone while 19650 – 19,670 shall act as a crucial resistance zone,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.