GIFT Nifty traded at 20,006.5, down marginally 0.04%, during Wednesday’s early trading session, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Tuesday, Indian equity indices, the NSE Nifty 50, slipped marginally by 0.02% to settle at 19,993.20, while the BSE Sensex added 94.05 points to settle at 67,221.13.
“The level of pessimism has risen in the stock market leading to a precautionary approach to book profits on a notion that the valuation has extended beyond the rationale. The correction is happening on midcaps while large caps are maintaining their strength. This cautious trend can prevail in the short-term, but the end-game is on the rise of the domestic economy, surprising upside in corporate earnings, and change in domestic investment patterns, which is expected to continue on a long-term basis,” Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
In the Asian market, the Asia Dow was down by 0.38%, whereas the benchmark Chinese index, the Shanghai Composite, was up by 0.14%, while Japan’s Nikkei 225 fell 0.16%. Meanwhile, Hong Kong’s Hang Seng index rose 0.48%.
Crude OIL
Brent rose 1.57% to $92.06 per barrel, while US crude rose 1.78% to $88.84 per barrel, fueled by OPEC’s tighter supply forecast and optimistic global demand outlook.
Retail Inflation rate eases
According to the data released by the National Statistical Office (NSO) on Tuesday, the retail inflation rate in India eased to 6.83% in August from a 15-month high of 7.44% in July 2023, primarily due to a slide in the prices of food items, especially vegetables.
FII/DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 1,047.19 crore, while domestic institutional investors (DII) purchased shares worth net Rs 259.48 crore on September 12, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added BHEL, Chambal Fertilisers & Chemicals, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Indian Energy Exchange, Manappuram Finance, National Aluminium Company and SAIL to its F&O ban list for September 13, 2023.
Bank Nifty Outlook
Commenting on the technical outlook of Bank Nifty index, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that, “Bank Nifty has also witnessed a sell off past opening higher and closed negative for the day. We believe that there could be a consolidation in the range of 45,800 – 45,000 from a short-term perspective. Daily and hourly momentum indicators are providing divergent signals which could lead to a consolidation in the near term.
Technical View
Commenting on the technical outlook of Nifty 50, Rupak De, Senior Technical analyst at LKP Securities, said that, “Nifty witnessed a correction as sellers exerted pressure around the 20,100 level. However, the correction was contained, thanks to put writers at 19,900 who helped shield the market from further declines. In the short term, the headline index Nifty is expected to maintain its strength as long as it stays above the critical short-term support level of 19,780. On the higher end, a decisive move above 20,100-20,150 could propel Nifty toward 20,500 in the short term.