Will Nifty reclaim 19500 or erase gains- See GIFT Nifty, FII data, crude, F&O ban, more before market opens

Will Nifty reclaim 19500 or erase gains? See GIFT Nifty, FII data, crude, F&O ban, more before market opens

GIFT Nifty traded 0.03% higher during Monday’s early trading session at 19,553, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Friday, the Sensex closed above the 65,300 mark, while the Nifty topped 19,400 by close. Sectors like metals, energy, automotive, and banking all saw gains, whereas healthcare and pharmaceutical stocks faced some downward pressure.

“Domestic markets made significant gains, buoyed by favourable global cues, a higher-than-expected domestic manufacturing PMI, and positive GDP growth data. This robust economic outlook propelled key manufacturing sectors to lead the rally, while strong sales figures generated increased interest in auto stocks. The positive opening in global markets provided additional momentum for investor sentiment, particularly as US PCE inflation aligned with expectations,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Asian-Pacific markets traded in the green on Monday. Chinese indices Shanghai Composite and Shenzhen Component increased by 1.23% and 1.22% respectively. Japan’s Nikkei-225 rose by 0.58%, while Hong Kong’s Hang Seng index remained unchanged. South Korea’s KOSPI also remained unchanged.

Crude Oil

Oil prices ticked up in Asian morning trade on Monday, as market sentiment was buoyed by positive China and U.S. economic data, as well as expectations of ongoing crude supply cuts from major producers.

FII/DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 487.94 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,294.93 crore on 1 September, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Indiabulls Housing Finance securities on its F&O ban list for 4 September. 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

“Bulls have regained strength and successfully defended the crucial support zone of 44,000-43,800. This area also witnesses fresh put writing, indicating strong support.The next immediate hurdle for the index is positioned at 44,500. A successful breakout above this level is likely to trigger a fresh upward movement.The overall sentiment and undertone in the Bank Nifty Index remain bullish, as long as the mentioned support levels of 44,000-43,800 are held on a closing basis,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“The short term trend of Nifty has turned up and one may expect further upside in the short term. The next overhead hurdles to be watched are around 19,600 and 19,800 levels in the next couple of weeks. Immediate support is placed at 19,350 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

(With agency inputs.)