Will Nifty show trend reversal to trade above 19800 or fall in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty show trend reversal to trade above 19800 or fall in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded down 23 points, or 0.12%, at 19,570.5, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously on Wednesday, the NSE Nifty 50 fell 140.40 points or 0.71% to settle at 19,671.10, while the BSE Sensex shed as much as 551.07 points to 65,877.02.

“Nervousness remained high amidst deepening Middle-East tensions, as Israel-Palestine conflict deepens. Other negative factors such as Uninspiring Q2 from corporate India Inc, the 10-year US Treasury yields spiking to 4.85%, rising expectations of one more interest rate increase from the Fed, and anxiety ahead of Powells Thursday’s speech continue to weigh on the sentiment. Technically, Nifty’s biggest support is placed at the 19,509 mark, while confirmation of strength for the index can be seen once it surpasses the 19,887 mark hurdle,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Key things to know before share market opens on October 19, 2023Wall Street

Wall Street’s major indexes ended lower on Wednesday. The tech-heavy Nasdaq Composite tanked 219.45 points, or 1.62%, to 13,314.30. The S&P 500 tumbled 58.6 points, or 1.34%, at 4,314.60, while the Dow Jones Industrial Average plunged 332.57 points, or 0.98%, to 33,665.08.

US Dollar

US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded down 0.04% at 106.53.

Crude Oil

WTI crude prices are trading at $88.10, down 0.25%, while Brent crude prices are trading at $91.10, up 0.44%, on Thursday morning.

Asian Market

Shares in the Asia-Pacific region are trading red on Thursday morning. The Asia Dow is trading down 1.28%, the benchmark Chinese index, the Shanghai Composite, is down 0.80% and Japan’s Nikkei 225 is down 1.18%. Meanwhile, Hong Kong’s Hang Seng index is also down 0.23%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,831.84 crore, while domestic institutional investors (DII) added shares worth net Rs 1,469.50 crore on October 18, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added SAIL, Balrampur Chini Mills, Indiabulls Housing Finance, India Cements, Manappuram Finance, Delta Corp, GNFC, Hindustan Copper and MCX India to its F&O ban list for October 19, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “The Nifty opened on a flat note and witnessed a sharp correction during the day. It continued to drift lower throughout the day and closed around the lows for the day. It closed in the negative down ~140 points. On the daily charts we can observe that Nifty has faced resistance from around the 61.82% fibonacci retracement level (19,850 – 19,885). On account of the correction the Nifty has now reached the zone of 19,670 – 19,640 where support in the form of 20- and 40-day moving averages are placed. Bollinger bands are contracting, indicating that consolidation is likely over the next few trading sessions. In terms of levels, 19,640 – 19,600 shall act as a crucial support and 19,770 – 19,800 is an immediate hurdle zone for the Index.”

Bank Nifty Outlook

On Wednesday, the Bank Nifty index shed as much as 520.80 points or 1.17 to settle at 43,888.70. “The Bank Nifty index experienced a bearish phase, encountering strong resistance at 44500, where the highest open interest is concentrated. The weak undertone in the market suggests a preference for selling on price rallies, and a breach of the 43,800 support level is expected to lead to further selling pressure. The index’s position below the 20DMA reinforces the bearish sentiment in the near term,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.