GIFT Nifty was 0.03% lower during Tuesday’s early trading session at 19,382, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Domestic benchmarks NSE Nifty 50 and BSE Sensex broke their two-day slide on Monday. Sensex rose by 0.41% to 65,216.09, and Nifty 50 increased by 83 points, settling nearly at 19,400 at 19,393.6.
“A rebound in the global market after a significant correction prompted buying in domestic equities, particularly within the IT sector. However, the potential for volatility to linger in the near term remains due to the increasing dollar index and elevated US bond yields, fuelled by concerns about rate hikes. Investors are keenly observing the commentary from the Fed chair during its forthcoming summer conference for interest rate insights. Meanwhile, Asian markets displayed a mixed performance, reacting to the smaller-than-anticipated rate cut initiated by the Chinese central bank,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the green on Tuesday. China’s Shanghai Composite and Shenzhen Component was higher by 0.91% and lower by 0.09% respectively. Japan’s Nikkei 225 traded with gains of 0.56%. South Korea’s Kospi advanced 0.39% while Hong Kong’s Hang Seng gained 0.48%. The Taiwan Weighted index recorded a gain of 0.26%.
Crude Oil
Oil prices were up in early trade on Tuesday ahead of data later expected to show a draw in U.S. crude oil and gasoline inventories, though persistent concerns over a slowdown in China’s economy limited the upside.
FII/DII Data
Foreign institutional investors (FII) sold shares worth net Rs 1,901.10 crore, while domestic institutional investors (DII) bought shares worth net Rs 626.25 crore on 21 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, Metropolis Healthcare, ZEEL, and Indiabulls Housing Finance securities on its F&O ban list for 22 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 saw a recent attempt by bulls to defend the support around 43750, coinciding with the 100 DMA. Maintaining this support suggests a bullish stance for the index. Immediate resistance lies at 44200. A breakthrough could pave the way for further gains towards 44500.The momentum indicator, RSI, trading in oversold territory, signals the potential for a bounce from current levels. This factor should not be disregarded,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“Technically, after a muted opening, the Nifty took support near the 50 day SMA (Simple Moving Average) or 19320 and reversed the trend thereafter. On daily charts, the index has formed a bullish candle and on intraday charts, and has also formed a double bottom formation. As long as the index is holding the 19,320 level, the bullish sentiment is likely to continue. Above which, the index could rally till 19,475-19,500. On the flip side, below 19,320, the uptrend would be vulnerable and could slip till 19,250-19,225,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.