GIFT Nifty traded in the red at 19,857.5, down by 48 points or 0.24% during Thursday’s early trading session, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. On Wednesday, September 20, the NSE Nifty 50 plunged 231.90 points, or 1.15%, to end the trading session at 19,901.40, while the Sensex tumbled as much as 796 points, or 1.18%, to 66,800.84.
“Weak global cues, surge in oil price to nearly 1-year high, and selling by FIIs are major concerns in the market. However, strong domestic economic data continue to support the market at lower levels. We expect the market to remain cautious in the near term amid major events, while profit booking in the broader market is likely to continue,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Crude Oil
Oil prices faced corrections in the market; WTI crude prices were trading at $90.28, while Brent crude prices were trading at $92.98 per barrel.
Asian Markets
The Asian market traded in red on Thursday. The Asia Dow was down by 0.91%, whereas the benchmark Chinese index, the Shanghai Composite, fell 0.0.52%, while Japan’s Nikkei 225 tumbled 0.77%. Meanwhile, Hong Kong’s Hang Seng index fell 111.57 points, or 0.62%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 3,110.69 crore, while domestic institutional investors (DII) sold shares worth net Rs 573.02 crore on September 20, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, BHEL, Chambal Fertilizers & Chemicals, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Manappuram Finance, Punjab National Bank and Zee Entertainment Enterprises to its F&O ban list for September 21, 2023.
Technical view
Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that, “On the daily charts we can observe that the Nifty is in the process of retracing the rise it has witnessed from 19,223 – 20,222. On the downside it can drift towards 19,840 where the 38.2% Fibonacci retracement level is placed. The Nifty has witnessed a faster retracement and also breached the low of 19,914 (wave IV low) which suggests that the rise from 19,223 to 20,222 has completed a wave. The daily momentum indicator still has a positive crossover however we shall assign more weightage to the price action and expect the momentum to align with the price action sooner rather than later. In terms of levels, 19,840 – 19,800 is the crucial support zone while 20,050 – 20,100 shall act as an immediate hurdle zone.”
Bank Nifty Outlook
The Bank Nifty index tumbled as many as 595.25 points, or 1.29%, to end Wednesday’s trading session at 45,384.60. “The Bank Nifty index faced negative news related to HDFC Bank, which had a detrimental impact on the index’s performance. As a result, selling pressure was observed throughout the trading day. The index breached the key support level of 46000, which has now turned into a resistance level on the upside. To resume the upward momentum, the index would need to close above this newly established resistance. The immediate downside support for the Bank Nifty stands at 45300. This level is critical, and a break below it is expected to trigger further selling pressure in the direction of the 45000 mark,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, while commenting on the technical outlook of the Bank Nifty index.