The GIFT Nifty recorded a 0.05% gain during Friday’s early trading session, with a value of 19,869 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 again and ended Thursday’s trading session broadly in green. The Nifty 50 rose 146 points to close at 19,979.15, a whisker away from 20,000. Sensex jumped around 500 points to 67,571.90, a new all-time closing high.
“Unlocking of value by heavy weights (like RIL & ITC) is apprising the main indices. The anticipation of a good Q1 results from Banks, is providing an extra boost to drive to new highs. Mixed cues from global peers is not disturbing the mood of the domestic market as FIIs inflows stay put to the prospects of the Indian economy” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Thursday. China’s Shanghai Composite and Shenzhen Component were flat, with Shanghai down by 0.03% and Shenzhen higher by 0.08%. Japan’s Nikkei 225 lost 0.8%. South Korea’s Kospi was flat, in the green by 0.08% while Hong Kong’s Hang Seng surged 0.83%. The Taiwan Weighted index recorded a gain of 0.46%.
Crude Oil
Brent oil prices were little changed on Friday and were set to close flat for the week after three straight weeks of gains, as markets weigh lower U.S. crude inventories and tapering interest rate hikes against weak Chinese economic data that could cap demand.
FII/DII Data
Foreign institutional investors (FII) net purchased shares worth Rs 3,370.90 crore, while domestic institutional investors (DII) net sold shares worth Rs 193.02 crore on 20 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, RBL Bank, L&T Housing Finance, Balrampur Chini Mills, L&T Housing Finance, and Punjab National Bank securities on its F&O ban list for 21 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
“Bank Nifty is currently experiencing a strong bullish trend, with the bulls dominating the market. The index successfully surpassed the key resistance level of 46000, indicating a continuation of the upward momentum.The index is characterised by a series of “higher high and higher low formations,” which is a bullish pattern that confirms the strength of the uptrend,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“The near term uptrend remains intact and the Nifty is at the edge of reaching the historical 20K mark. The present upside momentum is likely to continue for the short term and the next crucial upside resistance to be watched around 20,450, which is 100% Fibonacci projection-taken from important bottom-top-bottom as per weekly chart. Immediate support is at 19,850 levels” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.