GIFT Nifty was 0.34% lower during Friday’s early trading session at 19,317, indicating an opening in the red for domestic indices NSE Nifty 50 and BSE Sensex. On Thursday, domestic benchmarks NSE Nifty 50 and BSE Sensex ended in negative territory. The Sensex closed down by 0.6% at 65,151.02, while the Nifty 50 shed 100 points to finish at 19,365.25.
“The mounting influence of weak global cues hindered the domestic market’s ability to recoup, resulting in sustained selling pressure. The release of Fed minutes unveiled a divided stance among its members regarding the necessity of additional rate hikes, contrasting the previously anticipated rate pause. Concurrently, the Indian rupee experienced a decline due to the dollar index surpassing 103.5; however, likely intervention from the RBI offered a degree of support. Moreover, the escalation of US bond yields is expected to limit the influx of foreign investments into the Indian market, further impacting market dynamics,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Friday. China’s Shanghai Composite and Shenzhen Component were higher by 0.25% and lower by 0.28% respectively. Japan’s Nikkei 225 traded with losses of 0.32%. South Korea’s Kospi declined 0.34% while Hong Kong’s Hang Seng fell 0.38%. The Taiwan Weighted index recorded a gain of 0.24%.
Crude Oil
Oil prices looked set to snap a seven-week winning streak on Friday as concerns about demand growth in China as its economy slows, and the possibility of higher for longer U.S. rates triggered losses.
FII/DII Data
Foreign institutional investors (FII) sold shares worth net Rs 1,510.86 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 313.97 crore on 17 August, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has PNB, India Cements, Hindustan Copper, GNFC, SAIL, Chambal Fertilisers, Delta Corp, Granules India, ZEEL, and Indiabulls Housing Finance securities on its F&O ban list for 18 August. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Bank Nifty Outlook
“The Bank Nifty index displayed resilience by maintaining the support level of 43,600, which aligns with its 100-day moving average (100 DMA). This support zone becomes crucial for adopting a buy-on-dip strategy.A key resistance level at 44,200 awaits, and surpassing it could trigger short-covering and a potential move towards the 45,000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“The market is consistently facing selling pressure near the 19480 level while regularly taking support near 19,320. In addition, on daily charts, the index has formed a bearish inside candle which indicates that non-directional activity is likely to continue in the near future. We are of the view that, 19,320 could be the sacrosanct support zone for the market, below which, the index could slip till 19,250-19,200,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.