Will Nifty top 19400 or give up gains- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty top 19400 or give up gains? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.16% gain during Tuesday’s early trading session, with a value of 19,487.5 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices ended Monday’s session mildly in green. The NSE Nifty 50 advanced 24.10 points to 19,355.90 and BSE Sensex rose 60.10% to 65,344.17.

“Indian equities faced broad-based weakness, but the benchmark managed to stay marginally positive with the support of strong buying in heavyweight stocks. The weakness was led by IT stocks, as the sector is set to kick off the Q1 result season with expectations of soft earnings. Additionally, cues from the US markets are unfavourable, as concerns about another rate hike persist despite expectations of a fast cooling of future US CPI inflation data,” said Vinod Nair, Head of Research at Geojit Financial Services.

Crude Oil

Oil prices edged higher on Tuesday, recouping some of the losses from the previous session, as traders focused on supply cuts by the world’s biggest oil exporters Saudi Arabia and Russia and a weaker dollar.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth net Rs 588.48 crore, while domestic institutional investors (DII) net purchased shares worth net Rs 288.38 crore on 10 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Punjab National Bank, Delta Corp, Indiabulls Housing Finance, ZEE, India Cements, Granules India, and BHEL securities on its F&O ban list for 11 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

“Bank Nifty index has been primarily influenced by bearish sentiment as selling pressure persists from higher levels. The dominance of bears indicates a cautious market environment.The immediate resistance for the index is placed at 45200. If the index manages to break above this level, it could potentially shift the control back to the bulls,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“Nifty found resistance near 19,435 while 19,330 acted as a key support zone. For day traders, a fresh uptrend rally is possible only after the 19,435 breakout, above which the market could rally till 19,500-19,525. On the other hand, a fresh sell off could be seen after the dismissal of 19,330 and below the same, the index could slip till 19,250-19,200,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.