Will Nifty show trend reversal to trade above 19000 or slip in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty show trend reversal to trade above 19000 or slip in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded flat at 19,129.5 down merely 10.5 points or 0.05%, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Tuesday, the NSE Nifty 50 dropped 61.30 points or 0.32% to settle at 19,079.60, while the BSE Sensex tumbled 237.72 points or 0.37% to 63,874.93.

“Weak Asian market cues saw key benchmark indices languish in negative territory for a major part of the trading session amid selling in banking, auto and IT stocks. Even as India has somewhat managed to shrug off global challenges amid strong growth numbers, persistent FII selling has caused local markets to falter over the past month or so. We may see a mixed trend for markets in the near to medium term. On daily charts, the Nifty has formed a bearish candle indicating further weakness from the current levels. We are of the view that the market is likely to consolidate within the range of 18,980 to 19,220. However, below 18,980, traders may prefer to exit out from long positions,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

The tech-heavy Nasdaq Composite gained 61.76 points or 0.48% to 12,851.24. The S&P 500 added 26.98 points or 0.65% to 4,193.8, while the Dow Jones Industrial Average climbed 123.91 points or 0.38% to 33,052.87. US stock markets ended higher on Tuesday. However, recorded losses of 1.4% to 2.8% in October, marking its first three-month losing streak since 2020.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.05% at 106.71.

Crude Oil

WTI crude prices are trading at $81.17 up 0.19%, while Brent crude prices are trading at $87.41 down 0.05%, on Wednesday morning.

Asian Market

Shares in the Asia-Pacific region are trading mixed on Wednesday morning. The Asia Dow is trading up 1.08%, Japan’s Nikkei 225 is up 2.16% and the benchmark Chinese index Shanghai Composite is up 0.25%. Meanwhile, Hong Kong’s Hang Seng index is trading down 0.08%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 696.02 crore, while domestic institutional investors (DII) added shares worth net Rs 340.25 crore on October 31, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Gujarat Narmada Valley Fertilizers & Chemicals to its F&O ban list for November 1, 2023.

Technical View

Commenting on the technical view of the Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts we can observe that Nifty has faced resistance at the 19,160 – 19,220 zone. Now until today’s high of 19,234 is not taken out we can expect the nifty to trade with a negative bias. The hourly momentum indicator has a triggered a negative crossover from above the equilibrium line indicating that the pullback has matured, and a new cycle has begun. The fall shall intensify once the low of 18,940 is breached on the downside and should also be used as a stopples for the long positions. Overall, the pullback seems to have hit hurdles and now the next leg of the fall may resume.”

Bank Nifty

The Bank Nifty index shed 193.20 points or 0.48% to settle at 42,845.95 on Tuesday. “The Bank Nifty index experienced a trading session where it opened and hit its high at the same level, signaling a strong bearish presence in the market. The confirmed upside resistance for the index is now at 43,500, and until there is a closing breakthrough beyond this level, the overall trend remains negative. On the downside, the index has support at 42,400, and a breach below this level may intensify selling pressure, potentially driving the index towards the 41,500-41,000 range,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities