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

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

GIFT Nifty was flat during Thursday’s early trading session at 19,504.5, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex. Domestic indices NSE Nifty and BSE Sensex closed in the green on Wednesday after a day of volatile trade. The blue-chip Nifty 50 index settled above 19,400, breaching a key resistance level while Sensex added 200 points after erasing losses from the morning trade.

“Global markets have restrained from making significant moves as they await the outcome of the central bankers’ gathering at Jackson Hole scheduled for Friday. With the earnings season nearing its end, the heightened possibility of another rate hike in the US, along with the resultant increase in bond yields, are expected to keep the global market’s volatility high. On the domestic front, sentiments remained positive, backed by strong demand in the banking sector, though IT and pharma limited the gains,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Asian shares rallied on Thursday after blockbuster results from tech darling Nvidia boosted Wall Street and a retreat in U.S. bond yields eased pressure on borrowing costs globally. Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7%. China’s blue-chip CSI300 index was 0.51% higher in early trade. Hong Kong’s Hang Seng index opened up 0.82%.

Crude Oil

Oil prices slipped in early Asian trade on Thursday as weak manufacturing data in major economies outweighed optimism around a larger-than-expected drop in U.S. crude stocks.

FII/DII Data

Foreign institutional investors (FII) bought shares worth net Rs 614.32 crore, while domestic institutional investors (DII) bought shares worth net Rs 125.03 crore on 23 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Sun TV, Manappuram Finance, PNB, India Cements, Hindustan Copper, GNFC, BHEL, Delta Corp, Escorts Kubota and Indiabulls Housing Finance securities on its F&O ban list for 24 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

“Bank Nifty has witnessed a sharp pullback. On account of the rise it is now very close to the 44,600 – 44,700 where resistance in the form of the 20 and 40-day moving averages are placed which are likely to restrict a further sharp up-move. Bank Nifty is in a pullback mode which is also supported by the positive crossover on the daily momentum indicator,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“The Nifty continues to trade within the broader range of 19,300 and 19,500. On the daily timeframe, the headline Nifty index has been fluctuating between the boundaries set by the 21-day Exponential Moving Average (EMA) at 19,471 and the 50-day EMA at 19,281. Looking ahead, the Nifty is likely to maintain this range bound movement as long as it remains within these established thresholds. A significant breakthrough above the 19,500 mark could potentially trigger a rally towards higher levels,” Rupak De, Senior Technical analyst at LKP Securities said.