Will Nifty show trend reversal or sink further in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty show trend reversal or sink further in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded up merely 4 points, or 0.02%, at 19,815, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously on Monday, the NSE Nifty 50 slipped 0.10% to settle at 19,731.75, while the BSE Sensex shed 115.81 points to 66,166.93.

“Markets mostly wavered in Monday’s trade amidst volatility and ended in the red for the third straight session. Cautious mood prevailed in the wake of the intensifying Israel-Hamas conflict, and the geopolitical turmoil had an outsized effect on U.S. crude futures which soared to $87.69 per barrel. If today’s uninspiring session is any indication, then the market will waver and trade choppy in Tuesday’s session as well. Technically, the confirmation of strength for Nifty only above its biggest hurdles at the 19,887 mark, while the index has the biggest support at the 19,509 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

US Dollar

US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded up merely 0.08% at 106.32.

Crude Oil

WTI crude prices are trading at $86.56, down 0.12%, while Brent crude prices are trading at $89.68, up 0.03%, on Tuesday morning.

Asian Market

Shares in the Asia-Pacific region are trading broadly in green on Tuesday morning. The Asia Dow is trading up 0.80%, the benchmark Chinese index, the Shanghai Composite, is down 0.19%, while Japan’s Nikkei 225 is up 1.12%. Meanwhile, Hong Kong’s Hang Seng index is also up 0.62%. 

FII, DII Data

Foreign institutional investors (FII) sold shares worth net Rs 593.66 crore, while domestic institutional investors (DII) added shares worth net Rs 1,184.24 crore on October 16, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added GNFC, MCX India, Balrampur Chini Mills, Indiabulls Housing Finance, BHEL, Delta Corp, Hindustan Copper, India Cements, Manappuram Finance, Punjab National Bank, SAIL, and Sun TV Network to its F&O ban list for October 17, 2023.

Gold Outlook

Commenting on the Gold price, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said, “On the Daily chart, Gold price has broken through the resistance of the Descending broadening wedge and price has sustained over 50-EMA on Weekly chart placed at 57,288. This will be a crucial support mark for the Gold price. If price sustains over this level, we may expect more pullback in Gold price. Key hurdles would be at 60,000 – 60,510.

Technical View

Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts the Nifty today has formed an Inside Bar pattern which suggests consolidation and also makes the extremes of the range of the previous day candle crucial levels from short term perspective. In this case the extremes of the range are 19,805 and 19,635. A breach of this on either side shall lead to a trending move in that direction. The daily and hourly momentum indicators provide divergent signals and in such a scenario a consolidation appears high probability. Contraction of the Bollinger bands also supports our sideways outlook on the Index. The range of consolidation is likely to be 19,500 – 20,100 from short term perspective.”

Bank Nifty Outlook

On Monday, the Bank Nifty index shed 62.05 points, or 0.14% to settle at 44,225.90. “The Bank Nifty remained sideways as market participants stayed on the sidelines ahead of the scheduled Fed Chairman speech later this week. In the near term, weakness may persist in the banking sector as the index has stayed below the critical short-term moving average. Over the short term, the index might maintain a negative to sideways trend as long as it remains below 44,700. Support is situated at 44,000-43,800,” said Rupak De, Senior Technical analyst at LKP Securities.