Can Nifty hold its own above 21000- 8 things to know before the share market opens

Can Nifty hold its own above 21000? 8 things to know before the share market opens

GIFT Nifty traded flat at 21,076.5 down merely 0.08%, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 gained 68.25 points or 0.33% to settle at 20,937.10, while the BSE Sensex added 303.91 points or 0.44% to 69,825.60.

“The market achieved an all-time high, driven by robust domestic GDP growth. Despite the RBI maintaining policy status quo, an upgraded GDP growth forecast for FY24 (6.5% to 7%) boosted investor confidence. Measures to address the liquidity deficit, including the reversal of SDF & MDF facilities, positively impacted financials, leading to a 5% gain in Nifty Bank for the week. IT, consumer, auto, and realty sectors performed well due to valuation comfort, festive momentum, and a strong uptick in residential sales. Mid & small caps continued to outperform, driven by a healthy economic outlook, strong Q2 earnings, and corrections in oil prices,” said Vinod Nair, Head of Research at Geojit Financial Services.

Key things to know before share market opens on December 11, 2023Wall Street

US stocks closed higher on Friday, with the S&P 500 and Nasdaq notching their highest closing levels since early 2022 after a robust US jobs report fueled investor optimism about a soft landing for the economy, reported Reuters. The tech-heavy Nasdaq Composite advanced 0.45% to settle at 14,403.97 and the S&P 500 climbed 0.41% to 4,604.37. The Dow Jones Industrial Average added 0.36% to end the session at 36,247.87.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.03% at 103.97.

Crude Oil

WTI crude prices are trading at $71.39 up 0.22%, while Brent crude prices are trading at $76.12 up 0.44%, on Monday morning.

Asian Markets

Shares in the Asia-Pacific region are trading on a mixed note on Monday morning. The benchmark Chinese index Shanghai Composite is down 0.98% and Hong Kong’s Hang Seng index is trading down 1.01%, while the Asia Dow is trading up 0.16%, and Japan’s Nikkei 225 is up 1.67%.

FII, DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 3,632.30 crore, while domestic institutional investors (DII) sold shares worth net Rs 434.02 crore on December 8, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, National Aluminium Company, SAIL and Zee Entertainment Enterprises to its F&O ban list for December 11, 2023.

Technical View

Commenting on the technical outlook of the NSE Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the charts, we can observe that after the two-day consolidation, the Nifty has resumed its up move. The momentum indicator though is still not in sync which suggests caution at higher levels. The ideal strategy to trade is to hold on to long positions with a trailing stop loss mechanism. On the downside crucial support is placed at 20,860 – 20,800 and a dip towards this zone should be used as a buying opportunity as the overall trend is still positive. On the upside immediate hurdle is placed at 21,060 – 21,100.

Bank Nifty Outlook

Bank Nifty index surged 420.60 points or 0.90% to settle at 47,262.00 on Friday. “Bank Nifty witnessed a significant rally during the week, but has been consolidating around 47,000 post-rally. A breakout from the current consolidation level could push the index towards 48,000 in the short term. Support is placed at 46,500, where put writers have built significant positions. A decisive move above 47,200 might trigger a significant rally,” said Rupak De, Senior Technical analyst at LKP Securities.