Nifty to fall on global cues or top 19700- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Nifty to fall on global cues or top 19700? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.16% gain during Friday’s early trading session, with a value of 19,796.5 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended deep in the red. The Nifty 50 fell 0.6% to close at 19,659.9. On the other hand, Sensex crashed 440 points to end at 66,266.82.

“The FOMC’s decision aligned with market expectations as they implemented a 25 bps hike and expressed a data-centric approach for future rate actions. Positive global sentiment prevailed due to the reduced prospects of a US recession. Despite this, the domestic market witnessed sharp corrections led by banks and autos, while pharma stocks performed on a positive start to their earnings season,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the red on Friday. China’s Shanghai Composite and Shenzhen Component added 0.23% and 0.1% respectively. Japan’s Nikkei 225 crashed 1.21%. South Korea’s Kospi fell 0.31% while Hong Kong’s Hang Seng tanked 0.1%. The Taiwan Weighted index recorded a gain of 0.15%.

Crude Oil

Oil prices fell in early Asian trade on Friday as demand concerns weighed against strong economic data. Brent crude fell 59 cents, or 0.7%, to $83.65 a barrel but was on track for a weekly 5% increase. U.S. West Texas Intermediate (WTI) crude fell 51 cents, or 0.6%, to $79.58 a barrel, on track for a 5.2% weekly increase.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 3,979.44 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,528.15 crore on 27 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no securities on its F&O ban list for 28 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

“The Bank Nifty index experienced a day of monthly expiry dominated by the bears, as they were in full control and overwhelmed the bulls in the market.The index encountered strong resistance at the 46,000 level, which is significant as it corresponds to the point with the highest open interest on the call side. On the downside, the index found support around the 45,400 level,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.

Technical View

“The short term trend of Nifty seems to have reversed down and more weakness could be in store for the coming sessions. There is a possibility of important cluster support for the market around 19,500-19,450 levels. Any rise from here could find strong resistance at 19,850 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities