The GIFT Nifty recorded a 0.02% gain during Wednesday’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 again and ended Tuesday’s trading session broadly in green. The Nifty 50 rose 37.80 points to close at 19,748.25 after making a new 52-week high of 19,819.45 intraday. The Sensex jumped 205.21 points or 0.31% to settle at 66,795.14 after hitting a fresh all-time high at 67,007.02 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 0.15% and 0.39% respectively, while Japan’s Nikkei 225 gained 0.95%. South Korea’s Kospi was lower by 0.26% while Hong Kong’s Hang Seng tanked 1.45%. The Taiwan Weighted index recorded a gain of 0.01%.
Crude Oil
Global oil prices rose on Wednesday, boosted by China’s pledge to support economic growth, tighter supply from Russia and on lower weekly U.S. crude oil inventories.
FII/DII Data
Foreign institutional investors (FII) net purchased shares worth Rs 2,115.84 crore, while domestic institutional investors (DII) net sold shares worth Rs 1,317.56 crore on 18 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 19 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 are currently dominating the market, and the index has reached all-time high levels, indicating a strong upward momentum in the banking sector.The overall undertone of the index remains bullish, suggesting that the trend is likely to continue. Traders and investors may consider adopting a buy-on-dip approach, looking for opportunities to enter the market during price pullbacks.A key support level is observed at 45000, which may act as a significant level of support for the index,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Technical View
“Technically, intraday correction formation is indicating that a range bound activity is likely to continue in the near future. For Nifty, 19,700 could be the key support level for day traders, below which a quick intraday correction till 19650-19600 is seen. On the flip side, as long as the index is trading above 19,700, the uptrend wave is likely to continue and could rally till 19825-19875,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.