GIFT Nifty traded up by 48.5 points, or 0.25%, at 19,691 during Monday’s early trading session, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. The Benchmark equity indices ended the week’s last trading session in the red. The NSE Nifty 50 fell 0.34% to settle at 19,674.25, while the BSE Sensex shed over 220 points to 66,009.15.
“Feeble global cues combined with pressure on select heavyweights are weighing on the sentiment. Going ahead, recovery in the banking and financial majors would be critical for any meaningful rebound else the corrective tone would continue. We feel it is prudent to restrict aggressive positions until the market stabilizes,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
Crude Oil
Oil prices are on a surge on Monday; Brent crude prices are trading up by 0.39% at $93.65 per barrel, while WTI crude prices are trading at $90.40, up by 0.41%.
Asian Market
Shares in the Asia-Pacific region are trading in the green on Monday. The Asia Dow was up by 0.20%, whereas the benchmark Chinese index, the Shanghai Composite, surged 1.55%, while Japan’s Nikkei 225 rose 0.26%. Meanwhile, Hong Kong’s Hang Seng index soared 2.28%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 1,326.74 crore, while domestic institutional investors (DII) added shares worth net Rs 801.27 crore on September 22, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Canara Bank, Granules India, Delta Corp, Hindustan Copper, Indiabulls Housing Finance and Manappuram Finance to its F&O ban list for September 25, 2023.
Technical View
Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said,” The Nifty is currently trading at a crucial support zone 19,720 – 19,620 where support parameters in the form of 40 moving average and key Fibonacci retracement level is placed. The speed of the fall has slowed down as the hourly momentum indicator has a positive crossover which indicates that a pullback is likely before the next leg of the fall resumes. The pullback can be till 19,850 – 19,880 where key hourly moving averages and the gap area formed on 21st September is placed. In terms of levels, 19,620 – 19,604 is the crucial support zone while 19,850 – 19,880 shall act as an immediate hurdle zone.”
Bank Nifty Outlook
On Friday, the Bank Nifty index fell 11.80 points to 44,612.05. “The daily momentum indicator has a negative crossover which is a sell signal. Thus, both price and momentum indicator are suggesting a further decline. Considering sharp fall during the week it can provide a pullback and so sell on rise around resistance 44,900 – 45,000 shall be the preferred trading strategy. On the downside 44,500 – 44,300 shall be the potential downside from short term perspective,” Jain Gedia added, while commenting on the technical outlook of the Bank Nifty index.