The GIFT Nifty flat higher during Monday’s early trading session, up by 0.03% at 19,595, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex snapped their three day losing streak. The Nifty 50 added 135.35 points to close at 19,517. On the other hand, Sensex jumped 0.74% to end at 65,721.25.
“Positive earnings reports provided a much-needed boost to the domestic market, aiding its recovery from the impact of weak global cues. The pharma sector sustained its positive momentum, with the trend being extended by the IT and banking stocks. However, increasing US bond yields continued to distract the global market, impeding the inflow of foreign funds into the domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Monday. China’s Shanghai Composite and Shenzhen Component were up by 0.66% and 0.62% respectively. Japan’s Nikkei 225 was in the red at 0.36%. South Korea’s Kospi declined 0.19% while Hong Kong’s Hang Seng fell 0.2%. The Taiwan Weighted index recorded a gain of 0.49%.
Crude Oil
Oil prices extended gains on Monday to touch their highest levels since mid-April after top producers Saudi Arabia and Russia pledged to keep supplies down for another month to tighten global markets further and support prices.
FII/DII Data
Foreign institutional investors (FII) sold shares worth net Rs 366.61 crore, while domestic institutional investors (DII) bought shares worth net Rs 556.32 crore on 4 August, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Hindustan Copper, Gujarat Narmada Valley Fertilizers & Chemicals, Indiabulls Housing Finance and Piramal Enterprises securities on its F&O ban list for 7 August. 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
“Following a significant drop, the Bank Nifty index managed to regain some ground and concluded the day with a positive outcome.The bears demonstrated activity around the 45,200 level. A conclusive break above this level, particularly on a closing basis, could initiate further upward movement, potentially targeting levels around 45,800 or even 46,000. In terms of price range, the Bank Nifty index has been fluctuating within the broad range of 44,500-45,200,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“The short term trend of Nifty remains negative. The present upmove could encounter strong hurdles around 19,600-19,650 levels in the coming sessions. Immediate support is at 19,400 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.