GIFT Nifty traded at 20,183.5, up by 37.5 points or 0.19% during Thursday’s early trading session, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. The benchmark equity indices ended Wednesday’s trading session in positive territory. The NSE Nifty 50 rose 0.38% to settle at 20,070, while the BSE Sensex added 245.86 points to settle at 67,466.99.
“Domestic equities cheered the robust macro data (strong IIP growth and lower inflation) which helped the Nifty close above the 20k mark for the first time. Overall the sentiments got boosted post the release of domestic retail inflation which fell to 2-month low of 6.8% while July IIP growth surged to 5-month high. On Thursday, the market would react to US inflation data that would have a bearing on the US Fed interest rate decision next week. Overall, we would suggest investors to shift their focus from mid and small caps to large caps in the near term, as the risk-reward is favourable over there,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Crude Oil
Brent crude futures rose by 0.35 points, or 0.38%, to $92.23 a barrel on Thursday. Earlier, US crude fell 0.36% to end at $88.52 per barrel on Wednesday.
Asian Markets
The Asian market traded mixed on Thursday. The Asia Dow was up by 0.55%, whereas the benchmark Chinese index, the Shanghai Composite, was down by 0.45%, while Japan’s Nikkei 225 surged over 230 points. Meanwhile, Hong Kong’s Hang Seng index slipped marginally by 0.09%.
FII/DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 1,631.63 crore, while domestic institutional investors (DII) purchased shares worth net Rs 849.86 crore on September 13, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added REC, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Indian Energy Exchange, India Cements, Manappuram Finance, National Aluminium Company, and SAIL to its F&O ban list for September 14, 2023.
Bank Nifty Outlook
The Bank Nifty surged as much as 398.10 points to settle at 45,909.45 on Wednesday. Commenting on the technical outlook of the Bank Nifty index, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that, “Bank Nifty was the star performer today as it managed to breach the previous day high of 45,894 and closed above that indicating that it has started next leg of upmove. On the upside it has the potential to retest the swing high of 46,370 and above that 46,500. Daily and hourly momentum indicator has a positive crossover which is a buy signal.”
Technical View
Commenting on the technical outlook of Nifty 50, Rupak De, Senior Technical analyst at LKP Securities, said that, “Bulls successfully regained control from bears, pushing Nifty back above the 20,000 mark. The prevailing sentiment remains optimistic, contingent on put writers safeguarding the 19,900 level. A drop below 19,900 could unsettle put writers, potentially triggering market corrections. On the upside, the 20,100-20,150 range is poised to act as resistance. A clear breakthrough above 20,150 might propel Nifty into a sustained upward trend.”