The GIFT Nifty recorded a 0.02% gain during Tuesday’s early trading session, with a value of 19,784 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex made new all-time highs and ended Monday’s trading session broadly in green. The Nifty 50 rose 146.95 points or 0.75% to close at 19,711.45 after making a new lifetime high of 19,731.85 intraday.
“Despite the mixed performance observed in the Asian market due to China’s underwhelming GDP data, the Indian market exhibited resilience, in anticipation of a bumper Q1 result. Nifty50 Q1 consolidated PAT is projected to grow by more than 20% YoY, which can upgrade the full-year earnings growth of FY24. Small caps outperformed as comparative valuations are attractive trading below the long-term average compared to large and mid-caps,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Tuesday. China’s Shanghai Composite and Shenzhen Component slipped 0.41% and 0.2% respectively, while Japan’s Nikkei 225 gained 0.49%. South Korea’s Kospi was lower by 0.33% while Hong Kong’s Hang Seng tanked 2.02%. The Taiwan Weighted index recorded a loss of 0.12%.
Crude Oil
Oil prices edged higher in early trade on Tuesday after sinking in the previous session on weaker-than-expected Chinese economic growth, as investors eyed a possible tightening of U.S. crude supplies.
FII/DII Data
Foreign institutional investors (FII) net purchased shares worth net Rs 73 crore, while domestic institutional investors (DII) net bought shares worth net Rs 64.34 crore on 17 July, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Manappuram Finance, Indiabulls Housing Finance, Delta Corp and RBL Bank securities on its F&O ban list for 18 July. 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 bulls made a strong comeback in the market and pushed the Bank Nifty index higher, surpassing the significant resistance level of 45,000 with notable trading volumes. This breakout indicates a shift in sentiment towards bullishness. The strong support level is identified at 44,700, which is expected to act as a key level for potential pullbacks or market dips. A break above the level of 45,500 is anticipated to drive the index towards new high levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Technical View
“Having moved decisively above the resistance of 19,500 levels recently, Nifty is expected to reach towards the next upper trajectories of 19,800 levels (1.382% Fibonacci projection) and psychological 20,000 mark in the near term. Important support for trend reversal is placed at 19,500 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.