GIFT Nifty traded down 34.5 points, or 0.18%, at 19,520.5, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously on Thursday, The NSE Nifty 50 fell 46.40 points or 0.24% to settle at 19,624.70, while the BSE Sensex shed as much as 247.78 points to 65,629.24.
“Markets remained vulnerable amidst simmering Middle-East geopolitical tensions. Pessimism still continues to run high amidst negative catalysts like deepening Israel-Palestine conflict, uninspiring Q2 from corporate India Inc so far, the 10-year US Treasury yields spiking to 4.87%, rising expectations of one more interest rate increase from the Fed, and anxiety ahead of Powell’s speech later today. For Nifty, the support is placed at the 19,501 mark, while any strength can be seen only after the index breaks the 19,887 hurdle,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
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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.
