Will Nifty top 19400 or fall in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty top 19400 or fall in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty was 0.24% higher during Wednesday’s early trading session at 19,361.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Domestic indices NSE Nifty 50 and BSE Sensex gave up their gains on Tuesday to end flat, continuing the range-bound trend. Nifty concluded just below 19,400, unable to breach the strong resistance level, landing at 19,396.45 with a marginal 0.01% gain.

“Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties. Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid- and small-caps, exhibited resilience and gained traction,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Asian shares held tight ranges on Wednesday as investors awaited results from tech darling Nvidia to see if the sector’s lofty valuations can withstand a jump in bond yields, while still gloomy factory readings from Japan left sentiment fragile. MSCI’s broadest index of Asia-Pacific shares outside Japan were up 0.1%, hovering not far away from its nine-month trough hit just two sessions ago. Japan’s Nikkei rose a meagre 0.2%. Chinese shares gave up some gains, with blue-chips off 0.7% following a rebound of 0.8% the previous day, and Hong Kong’s Hang Seng Index easing 0.1% after jumping 1%.

Crude Oil

Oil prices eased in early trade on Wednesday, weighed down by fears U.S. interest rates could stay higher for longer and economic growth could slow further in top crude importer China and hurt fuel demand.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 495.17 crore, while domestic institutional investors (DII) bought shares worth net Rs 533.75 crore on 22 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has PNB, India Cements, Hindustan Copper, GNFC, SAIL, BHEL, Delta Corp, Metropolis Healthcare, ZEEL, Escorts Kubota and Indiabulls Housing Finance securities on its F&O ban list for 23 August. 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 has tried to sustain above 44,000 however as the day progressed it witnessed selling pressure and closed marginally in the red. The pullback towards key hourly moving averages placed in the range 44,000 – 44,100 is providing a stiff resistance. Unless the Bank Nifty manages to sustain above the resistance zone we can expect the selling pressure to continue. On the downside the Nifty Bank Nifty can slip towards 43,500 from a short term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“The market is witnessing a non-directional activity on the higher side and finding resistance near 19,450, while on the lower side the index is regularly taking support near 19,375. Any fresh uptrend is possible only after the dismissal of 19,450, and above the same the index could rally till 19,500-19,525. On the flip side, dismissal of 19,375 could accelerate the selling pressure and the index could slip till 19,325-19,300,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.