Key things to know before share market opens on October 20, 2023

Wall Street

Wall Street’s major indexes ended lower on Thursday. US stocks slid and 10-year US Treasury yields reached a 16-year high after US Federal Reserve Chairman Jerome Powell said that additional interest rate hikes could be warranted in view of economic resiliency and labor market tightness, reported Reuters.

Will Nifty scale to 25,000 and end the week with gains? See GIFT Nifty, FII data, F&O ban, crude, more before market opens Will Nifty trade above 24,800, or will it experience profit booking? See GIFT Nifty, FII data, F&O ban, crude, more before market opens Will Nifty scale up to 24,500, or will it face further decline? See GIFT Nifty, FII data, F&O ban, crude, more before market opens Will Nifty scale up to 24,500 or see profit booking from higher levels? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

The tech-heavy Nasdaq Composite tanked 128.13 points, or 0.96%, to 13,186.18. The S&P 500 fell 36.61 points, or 0.85%, to 4,277.99, while the Dow Jones Industrial Average dropped 251.04 points, or 0.75%, to 33,414.04.

US Dollar 

US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded up 0.07% at 106.32.

Crude Oil 

WTI crude prices are trading at $90.35, up 1.1%, while Brent crude prices are trading at $93.13, up 0.81%, on Friday morning.

Asian Market

Shares in the Asia-Pacific region are trading red on Friday morning. The Asia Dow is trading down 0.38%, the benchmark Chinese index, the Shanghai Composite, is down 0.39% and Japan’s Nikkei 225 is down 0.57%. Meanwhile, Hong Kong’s Hang Seng index is also down 0.67%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,093.47 crore, while domestic institutional investors (DII) added shares worth net Rs 736 crore on October 19, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Balrampur Chini Mills, Indiabulls Housing Finance, India Cements, Delta Corp, GNFC, Manappuram Finance, and MCX India to its F&O ban list for October 20, 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 gap down however it did not witness follow through on the downside. It witnessed a pullback after opening gap down and closed well off the day’s low though down 46 points. On the daily charts, the Nifty has taken support at the 19,530 – 19,500 zone where support in the form of the 61.82% Fibonacci retracement level of the previous rise form 19,333 – 19,850 is placed.” 

“We expect the Nifty stage a pullback after the recent sharp correction since the past couple of days. We believe that today’s low of 19,512 shall act as a crucial support and until that is not breached on the downside we can expect the Nifty to witness a pullback towards 19,730 – 19,800 from short term perspective,” Jatin Gedia  added.

Bank Nifty Outlook

On Thursday, the Bank Nifty index shed 134 points, or 0.31% to settle at 43,754.50. “The index currently faces immediate resistance at the 44,000 level, while support is situated at 43500. A decisive breakout in either direction from this range is expected to lead to significant trending moves.The prevailing sentiment for the Bank Nifty remains tilted toward a “sell on rise” approach, implying that traders are more inclined to sell the index during price rallies. Strong resistance is observed at 44,500, and a closing price above this level would indicate a resumption of the uptrend,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.