Nifty to regain momentum or fall under 19,500- See GIFT Nifty, FII data, F&O ban, crude before market opens

Nifty to regain momentum or fall under 19,500? See GIFT Nifty, FII data, F&O ban, crude before market opens

The GIFT Nifty was flat during Friday’s early trading session, up by 0.09% at 19,557, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex. On Thursday, the equity benchmarks closed lower after the RBI policy announcement. Nifty 50 declined 0.46% to close at 19,543.1. On the other hand, Sensex slipped over 300 points to end at 65,688.18.

“Inflation concerns have resurfaced in the domestic market after the RBI elevated their CPI forecast by 30 basis points to 5.4%, thereby increasing the chances of a protracted rate cut trajectory. Furthermore, the RBI’s move to control liquidity through incremental CRR dented the sentiments of the banking sector, although the impact is projected to be limited. Against this backdrop, investors will be closely watching the US inflation print today and the domestic inflation data on Monday,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Friday. China’s Shanghai Composite and Shenzhen Component were flat, up by 0.1% respectively. Japan’s Nikkei 225 was in the green, up 0.84%. South Korea’s Kospi advanced 0.31% while Hong Kong’s Hang Seng rose 0.37%. The Taiwan Weighted index recorded a gain of 0.62%.

Crude Oil

Oil prices edged higher on Friday on optimism from the OPEC producer group that oil demand will be robust in 2024 as it also nudged up its expectations for global economic growth.

FII/DII Data

Foreign institutional investors (FII) bought shares worth net Rs 331.22 crore, while domestic institutional investors (DII) added shares worth net Rs 703.72 crore on 10 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Zee Entertainment, Granules India, Manappuram Finance, Chambal Fertilisers, Can Fin Homes, Delta Corp, Indiabulls Housing Financial, Hindustan Copper, Balrampur Chini Mills securities on its F&O ban list for 11 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

“After the RBI policy, the Bank Nifty index encountered significant selling pressure, leading to a challenging situation. A substantial resistance is evident at the 45,000 mark. Breaking through this resistance level could be demanding due to the prevailing selling pressure. Support can be identified around the 44400 level. To regain control, bullish momentum would need to overcome the hurdle at 45150,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“Negative chart pattern like lower tops and bottoms is intact as per daily chart. Though, Nifty seems to have formed a new lower top at 19,645 levels on Wednesday, there is no indication of any sharp weakness from the lower highs. Hence, a decisive move above 19,650-19,700 levels is expected to bring sharp upmove for the market ahead and further weakness from here could find support around 19,450-19,400 levels for the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.