Will Nifty hold 21,500 levels or dip further- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty hold 21,500 levels or dip further? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Thursday. Here is all you need to know before market opens.

GIFT Nifty traded up by 23 points or 0.11% at 21,603, indicating positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 dropped 148.45 points or 0.69% to settle at 21,517.35, while the BSE Sensex ended lower by 535.88 points or 0.75% to 71,356.60.

Mishra also added that, It is a healthy correction so far despite the underperformance of two key sectors viz. banking & IT and participants should focus largely on buying opportunities on dips till Nifty holds 21,200 level. Defensive viz. pharma and FMCG are attracting noticeable interest on the expected lines while others are contributing on a rotational basis. Traders should align their positions accordingly but refrain from aggressive longs.

Key things to know before share market opens on January 04, 2024Wall Street

U.S. bonds and stocks extended their New Year rout as traders looked to the minutes of the Fed’s last meeting to see if rate cut wagers were too aggressive, reported Bloomberg. The tech-heavy Nasdaq Composite dipped 162.52 points or 1.10% at 14,603.42. The S&P 500 dropped by 34.24 points or 0.72% at 4,708.59, while the Dow Jones Industrial Average ended lower by 285.66 or 0.76%.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.08% at 102.41.

Crude Oil

WTI crude prices are trading at $73.01 up by 0.42%, while Brent crude prices are trading at $78.36 up by 0.14%, on Thursday morning.

Asian Markets

Shares in the Asia-Pacific region are trading mostly in negative territory on Thursday morning. The Asia Dow is trading down by 1.72%, Japan’s Nikkei 225 is red, down by 2%, Hong Kong’s Hang Seng index is trading down by 0.85% and the benchmark Chinese index Shanghai Composite is trading higher by 0.17%.

FII, DII Data

Foreign institutional investors (FII) sold shares worth net Rs 666.3 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 862.9 crore on January 03, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indian Energy Exchange, National Aluminium, SAIL, and Zee Entertainment to its F&O ban list for Jaunary 4, 2024.

Technical View

Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said, The Nifty dipped below the support level of 21650, resulting in a decline towards 21500. The prevailing sentiment appears weak, highlighted by the index closing below the crucial support at 21650. If it continues to drop below 21500 in the upcoming days, it could potentially exacerbate the negative sentiment, especially with expectations of substantial unwinding by put writers below 21500. The broader market outlook suggests a sell-on-rise strategy as long as it stays below 21650.

Bank Nifty Outlook

“The Bank Nifty experienced significant volatility on the day of the weekly expiry, maintaining a bearish trend as long as it stays below the key level of 48000. The index, however, managed to sustain above its 20-day moving average (20DMA) support at 47688. It is crucial for the index to hold this level, as a decisive break below it could intensify the selling pressure in the market. Traders should closely monitor the movements around 48000 and 47688 for potential trend changes and trading opportunities,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.