Will Nifty begin Week with gains or fall in trade- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

Will Nifty begin Week with gains or fall in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded up 34 points, or 0.17%, at 19,734.50, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. On Friday, the NSE Nifty 50 fell 0.22% to settle at 19,751.05, while the BSE Sensex shed 125.65 points to 66,282.74. 

“Weak revenue guidance of the IT sector and the current uptick in crude prices weighed on the sentiment. While higher-than-expected US inflation data pulled down the week’s early uptrend, which was positive on remark of less hawkish US Fed meeting. However, some optimism was visible from domestic factors like a steep decline in domestic inflation and impressive industrial production data, along with bright earnings expectations for Q2,” said Vinod Nair, Head of Research at Geojit Financial Services.

Crude Oil

WTI crude prices are trading at $87.43, down 0.36%, while Brent crude prices are trading at $90.68, down 0.23%, on Monday morning.

Asian Market

Shares in the Asia-Pacific region are trading in the red on Monday morning. The Asia Dow is trading down 1.75%, the benchmark Chinese index, the Shanghai Composite, is down 0.64%, and Japan’s Nikkei 225 is also down 0.1.57%. Meanwhile, Hong Kong’s Hang Seng index is down marginally by 0.06%.

FII, DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 317.01 crore, while domestic institutional investors (DII) sold shares worth net Rs 102.88 crore on October 13, 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, L&T Finance Holdings, BHEL, Delta Corp, Hindustan Copper, Manappuram Finance, Punjab National Bank, and Sun TV Network to its F&O ban list for October 16, 2023.

Technical View

Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts we can observe that the zone of 19,640 – 19,620 where support in the form of the 40 day average was placed acted as a cushion and prevented further decline. The rallies and corrections have been short lived and thereby only leading to increased volatility and wild swings in both directions. The daily Bollinger bands are contracting which indicates that the index is due for consolidation. The daily and hourly momentum indicators are providing divergent signals and in such a scenario a consolidation appears high probability. The range of consolidation is likely to be 19,500 – 20,100 from short term perspective. Stocks specific action and sector rotation are likely during this period of consolidation.”

Bank Nifty Outlook

On Friday, the Bank Nifty index shed as much as 311.25 points or 0.70% to settle at 44,287.95. “In the Bank Nifty index, the ongoing battle between the bulls and bears continued. Resistance is established at the 44,700 mark, while the support lies at 44,000. The overall market sentiment remains bullish as long as the critical support at 44,000 holds, and a breach below this level, confirmed by a closing basis, may lead to renewed selling pressure. On the upside, a substantial resistance level is placed at 45,000, and a breakout beyond this point is likely to trigger significant short-covering,”said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.