GIFT Nifty recorded a 0.02% gain during Thursday’s early trading session, with a value of 19,844.5 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 Wednesday’s trading session broadly in green. The Nifty 50 rose 0.42% to 19,833.15 while Sensex rose over 300 points to settle at 67,097.44.
“Despite the current high levels, domestic investors have hardly lost confidence in the Indian economy. It is experiencing a broad based rally strengthened by encouraging domestic macroeconomic data and sustained inflows from FIIs. Although there was some initial profit booking today, the market confidently recovered, with buying observed in all major sectors except auto and IT. Additionally, the global market is providing comfort to the rally, in anticipation of moderation in global inflation,” 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
Oil prices slipped in early Asian trade on Thursday, extending the previous session’s losses, as the dollar strengthened and on profit-taking after U.S. crude oil stocks fell less than expected. Brent futures dipped 14 cents, or 0.2%, to $79.32 a barrel by 0001 GMT, while U.S. West Texas Intermediate (WTI) crude fell 15 cents to $75.20 a barrel.
FII/DII Data
Foreign institutional investors (FII) net purchased shares worth Rs 1,165.47 crore, while domestic institutional investors (DII) net sold shares worth Rs 2,134.54 crore on 19 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 and Polycab securities on its F&O ban list for 20 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 consolidated within the range of the previous trading session (45,906 – 45,281) and has thus formed an Inside bar pattern which makes the extremes of the range crucial levels from a short-term perspective. A breach of the extremes shall lead to a move in that particular direction. We expect the breakout to be on the upside and expect the Nifty to target levels of 46,500,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Technical View
“The underlying uptrend of Nifty remains intact. Nifty is expected to move above the hurdle of 19,800-19,850 levels in the short term. The immediate upside target to be watched is around the historical 20K mark. Immediate support is placed at 19,700 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.