Will Nifty continue to trade above 19000 or fall in trade- See GIFT Nifty, FII data, crude, more before market opens

Will Nifty continue to trade above 19000 or fall in trade? See GIFT Nifty, FII data, crude, more before market opens

GIFT Nifty traded up 68 points or 0.36% at 19,096, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Friday, the NSE Nifty 50 soared 190 points or 1.01% to settle at 19,047.25, while the BSE Sensex climbed 634.65 points or 1.01% to 63,782.80.

“Ongoing unrest in West Asia and concerns over the potential impacts of higher interest rates on future economic growth have resulted in a decline in investor confidence. FIIs selling is affecting the domestic market invariably to heavy buying by DIIs. Domestic indices have displayed some recovery in the last trading day of the week, due to favourable US Q3 GDP growth and moderating US inflation leading to moderation in bond yield. Decent Q2 results in India, which were in line with optimistic estimates, may also support the market’s rebound. However, the volatility of the global market is expected to delay the recovery trend of the domestic market, since the global market is focused on the risk of further slowdown of the global economy due to elevated interest rate and geo-political tension,” said Vinod Nair, Head of Research at Geojit Financial Services.

Key things to know before share market opens on October 30, 2023Wall Street

US stocks closed mostly lower on Friday, losing momentum as investors digested a hectic week of mixed earnings, and economic data that seemed to support the ‘higher for longer’ interest rate scenario, reported Reuters.

The tech-heavy Nasdaq Composite gained 47.41 points or 0.38% at 12,643.01. The S&P dropped 19.86 points or 0.48% at 4,117.37, while the Dow Jones Industrial Average tumbled 366.71 points or 1.12% to 32,417.59.

US Dollar

The US Dollar Index (DXY) , which measures the value of the dollar against a basket of six foreign currencies, traded up 0.05% at 106.61.

Crude Oil

WTI crude prices are trading at $84.91 down 0.7%, while Brent crude prices are trading at $89.92 down 0.62%, on Monday morning.

Asian Market

Shares in the Asia-Pacific region are trading mixed on Monday morning. The Asia Dow is trading down 0.17% and Japan’s Nikkei 225 is down 1.13%, while the benchmark Chinese index, the Shanghai Composite is up 0.99%. Meanwhile, Hong Kong’s Hang Seng index is up 2.08%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,500.13 crore, while domestic institutional investors (DII) added shares worth net Rs 313.69 crore on October 27, 2023, according to the provisional data available on the NSE.

Technical View

Commenting on the technical outlook of the NSE Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “The Nifty opened gap up on Friday and continued to inch higher throughout the day to close in the green after a sharp decline during the week. We expect this pullback to continue till 19,160 – 19,220 where resistance in the form of a Fibonacci retracement level and the 40 hour moving average is placed. The hourly momentum indicator has a positive crossover which is a buy signal. Thus, considering the above parameters we expect the pullback to continue. On the weekly charts we can observe that the nifty has respected the support zone of 18,800 – 18,925 where multiple support parameters in the form of the 40 week average and a crucial Fibonacci retracement level was placed. Thus, going ahead the Nifty can consolidate within 18,800 – 19,200 before resuming next leg of the fall. In terms of levels, 19,160 – 19,220 shall act as a support zone while 18,930 – 18,900 shall act as an immediate support zone.”

Bank Nifty Outlook

The Bank Nifty index added as much as 501.85 points or 1.19% to settle at 42,782 on Friday. “After a consolidation breakdown on the daily chart, Bank Nifty experienced a 2000-point correction in a short span of time. The index appeared somewhat oversold, leading to a pullback on Friday. However, the sentiment remains predominantly bearish, and any upward movements may still face selling pressure. On the upper side, 43,000 could serve as a significant resistance level, as call writers have established substantial positions there. Support can be observed at 42,500, where writers have a strong presence,” said Rupak De, Senior Technical analyst at LKP Securities.