Will Nifty breach 19550 or give up gains- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty breach 19550 or give up gains? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.10% loss during Friday’s early trading session, with a value of 19,537.5 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended Thursday’s session in the green. The Nifty 50 advanced 29.45 points to 19,413.75 and the Sensex gained 0.25% to 65,558.89.

“Today’s domestic rally was supported by the contra bet buying of the IT stocks which was supported by stable margins, new generation business opportunities and moderation of USD, as latest US inflation is fast approaching the Fed’s target levels. The broad market was trading positively at the all-time high level in anticipation of buoyant Q1 result and low volatility (VIX). However, a mixed start to bank earnings, coupled with ongoing concerns about domestic inflation, attracted bearish sentiment towards the latter half,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Friday. China’s Shanghai Composite traded flat at 0.04% up, while Japan’s Nikkei 225 slipped 0.36%. Hong Kong’s Hang Seng index jumped by 0.55% while South Korea’s Kospi was higher by 0.99%. The Taiwan Weighted index recorded a rise of 0.58%.

Crude Oil

Oil prices rose on Friday on support from tighter supply amid issues in Libya and Nigeria and easing U.S. inflation, which markets hope may bring an end to interest rate hikes in the world’s biggest economy.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth net Rs 2,237.93 crore, while domestic institutional investors (DII) net sold shares worth net Rs 1,196.68 crore on 13 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Hindustan Copper, Punjab National Bank, Manappuram Finance, Indiabulls Housing Finance, ZEE, Delta Corp and India Cements securities on its F&O ban list for 14 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 continued to correct and traded in a downward-sloping channel. It has now reached the lower end of that channel and also the 50% Fibonacci retracement level (44,600) which should attract buying interest. We expect the Bank Nifty to start recovering as it has now reached a crucial support zone. On the upside initially, we expect it to target 45,000,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

Technical View

“We observe minor degrees of higher lows and the overall trend status for Nifty remains positive. Any weakness below the immediate support of 19,300 could drag Nifty down to 19,200-19,100 levels in the near term. A decisive upside above 19,550 is likely to bring more upside for the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.