The GIFT Nifty traded lower during Wednesday’s early trading session, down by 0.20% at 19,763.5, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended in the red after a volatile day of trade on Tuesday. The Nifty 50 gave up 20 points to close at 19,733.55. On the other hand, Sensex slipped 0.1% to end at 66,459.31.
“The domestic indices traded with a negative bias below the flattish trend, impacted by global peers. Despite this, mid- and small-cap stocks continued to outperform the benchmark index. IT stocks rallied on hopes of a soft landing for the US economy. India’s manufacturing activity remained robust, although marginally it moderated for the second consecutive month in July. The market direction in the upcoming days will be influenced by key data points, including auto sales figures, US PMI, and US job data,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Wednesday. China’s Shanghai Composite and Shenzhen Component were down by 0.28% and 0.2% respectively. Japan’s Nikkei 225 tanked 1.12%. South Korea’s Kospi dclinedd 0.38% while Hong Kong’s Hang Seng fell 0.54%. The Taiwan Weighted index recorded a loss of 0.16%.
Crude Oil
Oil prices rose more than 1% on Wednesday, trading near their highest since April, after industry data showed a much steeper-than-expected draw last week in crude oil inventories in the U.S., the world’s biggest fuel consumer.
FII/DII Data
Foreign institutional investors (FII) sold shares worth net Rs 92.85 crore, while domestic institutional investors (DII) bought shares worth net Rs 1,035.69 crore on 1 August, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Hindustan Copper, Piramal Enterprises and Indiabulls Housing Finance securities on its F&O ban list for 2 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
“Bank Nifty also closed in the red today. It managed to retrace only 50% of the previous fall from 46,310 – 45,238 and again faced selling pressure. Considering that the hourly momentum indicator has reached the equilibrium line we expect that the pullback has matured and is ready for the next leg of the down-move. We expect the Bank Nifty to drift lower to 45,000 over the next few trading sessions,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Technical View
“The short term trend of Nifty remains choppy. Some more consolidation movement or minor weakness is likely before showing a decisive upside breakout of the crucial overhead resistance around 19,850 levels in the short term. Immediate support is placed at 19,600 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities