Nifty to snap losing streak or slip under 19300- See GIFT Nifty, FII data, F&O ban, crude before market opens

Nifty to snap losing streak or slip under 19300? See GIFT Nifty, FII data, F&O ban, crude before market opens

The GIFT Nifty traded higher during Friday’s early trading session, up by 0.28% at 19,506.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex extended losses for the third session. The Nifty 50 gave up 145 points to close at 19,381.65. On the other hand, Sensex slipped 0.82% to end at 65,240.68.

“Global markets are still grappling with the impact of the US rating downgrade, with spiking bond yield and strengthening dollar index. However, the pharma sector has managed to weather the storm thanks to its strong earnings outcome, while mid and small-cap stocks have outperformed the benchmark index. The domestic service PMI has surpassed market expectations, reaching a 13-year high due to a rise in new orders, particularly in international sales,” 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, snapping the global rout following the Fitch Ratings’ downgrade. China’s Shanghai Composite and Shenzhen Component were up by 0.78% and 0.84% respectively. Japan’s Nikkei 225 was mildly in the green at 0.05%. South Korea’s Kospi declined 0.16% while Hong Kong’s Hang Seng jumped 1.95%. The Taiwan Weighted index recorded a loss of 0.63%.

Crude Oil

Oil prices rose for a second day on Friday, set for their sixth week of gains, after Saudi Arabia and Russia, the world’s second and third-largest crude producers, pledged to cut output through next month.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 317.46 crore, while domestic institutional investors (DII) bought shares worth net Rs 1,729.19 crore on 3 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Hindustan Copper, Gujarat Narmada Valley Fertilizers & Chemicals, and Piramal Enterprises securities on its F&O ban list for 4 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 also witnessed a continuation of the fall. It has closed below the 40-day moving average (44,861) which is a sign of weakness. On the downside, the fall appears overstretched and hence a pullback cannot be ruled out. It can bounce till 45,000 – 45,200 where the key hourly moving averages are placed. Overall, the trend is still negative and we expect it to drift lower to 44,000 in the short term,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“Normally, such high wave formation after a reasonable upmove or decline cautious for impending reversal pattern. Having declined in the last few sessions and the formation of lower tops and bottoms on the daily chart indicates a possibility of minor upside bounce in the market towards the new lower top formation. On the upper side, 19,550-19,600 is expected to be a sell on rise opportunity. Immediate support is placed at 19,300 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.