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

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

GIFT Nifty traded 0.01% higher during Thursday’s early trading session at 19,480.5, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. The equity benchmarks closed flat on Wednesday, paring most intraday gains. Nifty 50 settled higher by 0.02% at 19,347.45 while Sensex gained 65,087.25, higher by 11 points.

“Positive sentiment initially propelled domestic equities, buoyed by softer US labour market data that caused a retreat in US bond yields, alleviating concerns about rate hikes. This positive outlook was reinforced by Chinese banks’ move to reduce existing mortgage rates, favourably impacting Indian metal stocks. However, gains were tempered as the day progressed, primarily due to weakness in global markets attributed to lacklustre economic data from Europe. Banking stocks bore the brunt of this downturn, while mid- and small-cap segments displayed resilience amid the market dynamics,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Asian shares were set for the worst month since February, with sentiment hurt by still-gloomy China factory activity, while investors were also cautious ahead of a barrage of U.S. data that could add to bets that interest rates have peaked. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1% but was still headed for a monthly loss of 5.9%, the largest since February.

Chinese indices Shanghai Composite and Shenzhen Component decreased by 0.15% and 0.03% respectively. Japan’s Nikkei-225 rose by 0.56%, while Hong Kong’s Hang Seng index added 0.53%. South Korea’s KOSPI dropped by 0.43% while the Taiwan index slipped by 0.38%.

Crude Oil

Global oil prices were up in early trade on Thursday backed by tighter U.S. supply, with a focus on China factory activity due later in the day amid recent weak economic expansion data in the world’s second-biggest economy. Brent crude futures contract for October and which expires on Thursday was up 14 cents, or 0.16%, at $86 per barrel and the more active November contract was up 10 cents, or 0.12%, at $85.34.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 494.68 crore, while domestic institutional investors (DII) bought shares worth net Rs 1,323.24 crore on 30 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Indiabulls Housing Finance and BHEL securities on its F&O ban list for 31 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

“The Bank Nifty index experienced a significant bearish takeover, leading to a rapid correction of 600 points from the day’s high. As the index navigates this downward movement, its next significant support on the downside is positioned at 44,000. This level is crucial, given the substantial open interest built up on the put side.The overall market sentiment remains bearish, with considerable resistance anticipated around the range of 44,500 to 44,700 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“The short term trend of Nifty remains choppy. The lack of strength to sustain the upside bounce on Wednesday could possibly drag Nifty down to its immediate supports of 19250-19200 levels in the short term. On the upper side, the area of 19450 is likely to be a strong resistance,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

(With agency inputs.)