Will Nifty rise above 19000 or sink further in trade- See GIFT Nifty, FII data, crude, more before market opens

Will Nifty rise above 19000 or sink further in trade? See GIFT Nifty, FII data, crude, more before market opens

GIFT Nifty traded up 48 points or 0.25% at 19,005.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously on Thursday, the NSE Nifty 50 tanked 264.90 points or 1.39% to settle at 18,857.25, while the BSE Sensex shed as much as 900.91 points or 1.41% to 63,148.15.

“In the backdrop of weak global cues, investors shunned local equities at will on the monthly F&O expiry day with benchmark Nifty closing below the crucial 19k mark amid sell-off in frontline banking, automobile and IT stocks. Investors are worried about the simmering West Asia conflict, economic uncertainty and rate hike woes, and hence maintained their bearish stance for the sixth straight session,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

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

US stocks tumbled on Thursday, dragged by tech and tech-adjacent megacap shares as investors digested mixed quarterly earnings and signs of economic resiliency that could encourage the Federal Reserve to keep interest rates at a restrictive level longer than expected, reported Reuters.

The tech-heavy Nasdaq Composite tanked 225.62 points or 1.76% to 12,595.61. The S&P tumbled 49.54 points or 1.18% to 4,137.23, while the Dow Jones Industrial Average dropped 251.63 points or 0.76% to 32,784.3.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.02% at 106.63.

Crude Oil

WTI crude prices are trading at $83.70 down 0.53%, while Brent crude prices are trading at $88.47 down 0.61%, on Friday morning.

Asian Market

Shares in the Asia-Pacific region are trading broadly in green on Friday morning. The Asia Dow is trading up 0.80%, the benchmark Chinese index, the Shanghai Composite is down 0.09%, while Japan’s Nikkei 225 is up 0.91%. Meanwhile, Hong Kong’s Hang Seng index is up 0.81%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 7,702.53 crore, while domestic institutional investors (DII) added shares worth net Rs 6,558.45 crore on October 26, 2023, according to the provisional data available on the NSE.

Technical View

Commenting on the technical outlook of Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities, said, “Once again, bears remain at the helm as the Nifty slipped below 19,000 for the first time in four months, indicating a rising bearish condition. The bearish crossover in the momentum indicator also supports the negative momentum. In the current scenario, supports are appearing very fragile and vulnerable. Despite the recent sharp decline, further correction from the current level seems highly possible. Support on the lower end is visible at 18,600-18,645, while resistance is positioned at 18,950-19,000.”

Bank Nifty Outlook

On Thursday, the Bank Nifty index tumbled as much as 551.85 points or 1.29% to 42,280.15. “Bank Nifty is heading towards the psychological support of the 42,000. The fall has been very sharp and is appearing oversold which increases the probability of a pullback. The pullback can be expected till 42,500 – 42,600 however it is unlikely to result into a trend reversal. Overall, the trend is negative and we expect it to target levels of 40,850 from short term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.