The GIFT Nifty recorded a 0.04% gain during Wednesday’s early trading session, with a value of 19,865 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex continued its sideways trend, ending flat after a session of volatile trade. The Nifty 50 rose 8.25 points to close at 19,680.6. On the other hand, Sensex slipped 0.04% to end marginally in the red, at 66,355.71.
“Indian indices hovered along the flat line, waiting ahead for the crucial decision of Fed policy. Metal stocks rose due to China’s commitment to provide policy support to its realty sector, while utilities were up in anticipation of demand & improvement in operating margin. The recent correction of the domestic market can be attributed to several factors, including muted start to Q1 results, a reversal in FII activity, a rising dollar index, and an increase in crude oil prices,” 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 in the red, with Shanghai down by 0.11% and Shenzhen slipping 0.18%. Japan’s Nikkei 225 fell 0.14%. South Korea’s Kospi tanked 0.9% while Hong Kong’s Hang Seng fell 0.48%. The Taiwan Weighted index recorded a loss of 0.06%.
Crude Oil
Oil prices eased on Wednesday, sliding from three-month highs hit the previous day after industry data showed an expected rise in U.S. crude stockpiles, but losses were capped amid signs of tighter global supply and hopes for China’s economic stimulus.
FII/DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,088.76 crore, while domestic institutional investors (DII) sold shares worth net Rs 333.7 crore on 25 July, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has RBL Bank, Delta Corp, Sun TV Network, Canara Bank, and Indiabulls Housing Finance securities on its F&O ban list for 26 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 faced selling pressure as it slipped below 46000. Profit booking has been evident for the past two days. The Relative Strength Index (RSI) indicates a bearish crossover. The support level is positioned at 45500, and resistance is at 46000,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
Technical View
“After a two day correction, the market witnessed range-bound activity near the 10-day SMA (Simple Moving Average). For day traders, 19,620 would be the key support level, and if the index trades above the same, we could expect a quick pullback rally till 19,720-19,750. On the flip side, dismissal of 19,620 could accelerate selling pressure and below the same, the index could slip till 19,570-19,550,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
US Federal Reserve Monetary Policy
The US Federal Reserve is expected to raise interest rates for the 11th time on Wednesday, as investors hope it will be the last hike in the current monetary policy cycle. Markets projected that the Fed will approve a hike of 25 bps, taking the country’s key borrowing rate to the 5.25-5.5% range.