Nifty to extend gains or slip below 19700- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Nifty to extend gains or slip below 19700? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty traded flat during Tuesday’s early trading session, higher by 0.02% at 19,890.5, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended with gains on Monday, snapping a two day losing streak. The Nifty 50 added 10.8 points to close at 19,753.8. On the other hand, Sensex advanced 0.56% to end at 66,527.67.

“Indian indices have resumed their rally, following the global market trend, as cooling inflation across the globe gave hopes of an end to the policy tightening era. The latest positive development was the Eurozone’s inflation slowing for the third consecutive month in July, coming in at 5.3%, in line with market predictions. Moreover, the euro zone economy grew by 0.3% during the June quarter, according to preliminary estimates, slightly surpassing market expectations,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Monday. China’s Shanghai Composite and Shenzhen Component were flat, higher by 0.06% and 0.01% respectively. Japan’s Nikkei 225 advanced 0.49%. South Korea’s Kospi soared 1.19% while Hong Kong’s Hang Seng gained 0.846. The Taiwan Weighted index recorded a loss of 0.25%.

Crude Oil

Oil price were little changed on Tuesday, trading near a three-month high reached on Monday, on signs of tightening global supply as producers implement output cuts and strong demand in the United States, the world’s biggest fuel consumer.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 701.17 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,488.07 crore on 31 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Piramal Enterprises and Indiabulls Housing Finance securities on its F&O ban list for 1 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 also opened on a positive note and witnessed a range-bound price action. It managed to hold on the 20-day moving average (45392) and witnessed a bounce from that support. Divergent signals from the daily and hourly momentum indicators further support our sideways outlook for Bank Nifty. Overall, we expect Bank Nifty to consolidate between 46,500 – 45,000,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“The underlying trend of Nifty remains choppy. A decisive move above the immediate resistance of 19,870 levels could open sharp upside towards the next resistance of around 20K mark in the near term. Immediate support is placed at 19,600 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities