GIFT Nifty traded 0.13% lower during Friday’s early trading session at 19,403, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. The equity benchmarks snapped a three-day gaining streak on Thursday. Nifty 50 settled lower by 0.43% at 19,253.80, under the 19,300 mark, while Sensex fell 250 points to close at 64,831.41. .
“A slew of weak economic indicators from the US, including a softened GDP figure, have heightened the likelihood of a pause in the Fed’s rate tightening, resulting in a downward trajectory of bond yields. However, this development had a limited impact on domestic sentiment on the day of expiry, with the market experiencing declines ahead of the release of India’s GDP data, scheduled for today. Global markets joined the trend as Eurozone inflation persisted at 5.3% as per preliminary estimates, surpassing the market’s anticipation of 5.1% along with negative cues from Asian economies,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Asian-Pacific markets traded in the green on Friday. Chinese indices Shanghai Composite and Shenzhen Component increased by 0.47% and 0.53% respectively. Japan’s Nikkei-225 rose by 0.62%, while Hong Kong’s Hang Seng index remained unchanged. South Korea’s KOSPI added a slight 0.02%.
Crude Oil
Oil prices were set to snap a two-week losing streak as they rose for a fourth consecutive session on Friday due to tightening supplies and expectations of the OPEC+ group of oil producers extending output cuts to the end of the year.
FII/DII Data
Foreign institutional investors (FII) sold shares worth net Rs 2,973.10 crore, while domestic institutional investors (DII) bought shares worth net Rs 4,382.76 crore on 31 August, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no securities on its F&O ban list for 1 September. 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
“During the last day of August expiry, the Bank Nifty index faced persistent selling pressure from the bears, ultimately leading to a negative close of 0.35% for the day. The upcoming sessions are crucial for the bulls as they aim to defend the critical support zone of 44,000-43,800. Failure to hold this support level could trigger additional declines, potentially pushing the index towards the 43,000 mark.On the upside, the immediate obstacle for the index lies at 44,200. If the index manages to breach this level, it could set the stage for further upward movement towards the 44,500 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“The underlying trend of Nifty remains choppy with weak bias. There is a possibility of weakness below 19,200 levels in the coming sessions. The strong support is placed around 19,000-18,900 levels, where one may expect a sizable upside bounce from the lows,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
(With agency inputs.)