GIFT Nifty trades down by 69.5 points, or 0.35%, at 19,659 during Tuesday’s early trading session, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. The benchmark equity indices ended Monday’s trading session on a flat note. The NSE Nifty 50 ended at 19,674.55 up by 30 points, while the BSE Sensex added 14.54 points to 66,023.69.
“Markets have come under pressure in recent weeks as the US central bank hinted at more rate hikes in the future. This along with persistent selling by FIIs, rising crude prices, and a spike in bond yields dampened investors’ sentiments. We expect weakness to persist in the market amid cautiousness ahead of the monthly FNO expiry this week and economic data like India’s Infrastructure Output for the month of August US/UK Q2 GDP data and US/ China manufacturing PMI data to be released,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Crude Oil
Oil prices are trading lower on Tuesday. Brent crude prices are trading down 0.11% at $93.19 per barrel, while WTI crude prices are trading at $89.68, down 0.31%.
Asian Market
Shares in the Asia-Pacific region are trading in the red on Tuesday. The Asia Dow is trading down 0.47%, whereas the benchmark Chinese index, the Shanghai Composite, falls 0.06%, while Japan’s Nikkei 225 plunges 0.75%. Meanwhile, Hong Kong’s Hang Seng index tumbles 0.74%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 2,333.03 crore, while domestic institutional investors (DII) added shares worth net Rs 1,579.28 crore on September 25, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Canara Bank, Granules India, Hindustan Copper, and Indiabulls Housing Finance to its F&O ban list for September 26, 2023.
Technical View
Commenting on the technical outlook of Nifty 50, Ajit Mishra, SVP – Technical Research, Religare Broking, said, “It is a normal pause and we may see some rebound too due to oversold positions. However, the upside seems capped citing a strong hurdle around the 19,800-19,900 zone. Besides, weak global cues would continue to weigh on the sentiment. We thus reiterate our view to stay stock-specific and focus more on risk management.”
Bank Nifty Outlook
On Monday, the Bank Nifty index added over 150 points to 44,766.10. “We expect a pullback in the Bank Nifty as well. On the upside the pullback is likely towards 45,000 – 45,200. On the hourly charts the momentum indicator has a positive crossover which is a buy signal and the positive divergence suggest that the momentum on the downside is weakening,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.