Nifty to gain on global cues or give up 19600- See GIFT Nifty, FII data, F&O ban, crude before market opens

Nifty to gain on global cues or give up 19600? See GIFT Nifty, FII data, F&O ban, crude before market opens

The GIFT Nifty traded flat during Monday’s early trading session, indicating a similar opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended marginally red after trimming most losses on Friday. The Nifty 50 fell 0.05% to close at 19,646. On the other hand, Sensex tanked 106 points to end at 66,160.2.

“The better-than-expected US Q2 GDP data, though positive, hindered the mood of the domestic market as it signalled the chances of another rate hike. The Fed chief’s comments about a data-centric approach without ruling out rate hikes added to the uncertainty. Furthermore, the reversal of the buying trend by FII and the rise in US bond yields contributed to market volatility. However, Asian markets remained largely positive due to the BOJ’s decision to retain the policy rate, contrary to speculation about the removal of stimulus measures,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Monday. China’s Shanghai Composite and Shenzhen Component surged 0.96% and 1.24% respectively. Japan’s Nikkei 225 jumped 1.9%. South Korea’s Kospi soared 1.14% while Hong Kong’s Hang Seng gained 1.84%. The Taiwan Weighted index recorded a gain of 0.62%.

Crude Oil

Oil prices hovered near three-month highs on Monday, set to post their biggest monthly gains in over a year on expectations that Saudi Arabia would extend voluntary output cuts into September and tighten global supply.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 1,023.91 crore, while domestic institutional investors (DII) bought shares worth net Rs 1,634.37 crore on 28 July, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no securities on its F&O ban list for 28 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

“On the weekly chart as well we can observe that the Bank Nifty traded within the range 44,700 – 46,370 of the penultimate week and thus formed an Inside Bar pattern which makes the extremes of the range crucial levels to watch out for in the short term. A breach of this range on either side shall lead to a move in that direction. Overall, we expect the bank Nifty to consolidate between 46,500 – 45,000,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“Nifty continues to be in a short term downward correction and this consolidation is likely to continue for next week. Any upside bounce from here could encounter strong resistance around 19,750-19,800 levels. The next crucial lower supports to be watched around 19,500-19,450 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities