Will Nifty top 19500 or bears to come back- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty top 19500 or bears to come back? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The GIFT Nifty recorded a 0.09% loss during Wednesday’s early trading session, with a value of 19,520 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended Tuesday’s session broadly in green. The NSE Nifty 50 rose 83.50 points to 19,439.40 and BSE Sensex surged 0.42% to 65,617.84.

“The market now awaits the Q1 results, IT sector which kicks off tomorrow, where expectations are muted with a focus on the sustenance of margin and improvement in long-term guidance. The positivity also stems from China’s anticipated stimulus to withstand economic growth and hope on the moderation in US inflation data. The overall valuation for India is marginally above the long-term average, which is fair given strong earnings expectations on FY24,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the red on Wednesday. China’s Shanghai Composite added 0.06% in trade, trading flat, while Japan’s Nikkei 225 tanked 1.08%. Hong Kong’s Hang Seng index gained by 1.28% while South Korea’s Kospi was lower by 0.1%. The Taiwan Weighted index recorded a rise of 0.13%.

Crude Oil

Oil prices were largely unchanged in early Asian trade on Wednesday as hopes for higher demand in the developing world and supply cuts by the world’s biggest oil exporters offset fears of an economic downturn driving up U.S. crude stockpiles.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth net Rs 1,197.38 crore, while domestic institutional investors (DII) net sold shares worth net Rs 7.25 crore on 12 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Punjab National Bank, Manappuram Finance, Delta Corp, Indiabulls Housing Finance, ZEE, India Cements, Granules India, and BHEL securities on its F&O ban list for 11 July. 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 continued to correct and traded in a downward sloping channel.It is trading around the 38.2% fibonacci retracement level (44,840). However until we get a daily positive close the correction is likely to continue. On the downside, the crucial support level is placed at 44,587 – 44,335,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

Technical View

“A decisive upside breakout of 19,500 levels is expected to pull Nifty towards another hurdle of 19,800 levels in a quick period of time. However, any weakness below 19,300 levels could result in a downward correction towards the next support of 19,100-19,000 levels in the near term,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.