Will Nifty breach 19500 or fall further? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty traded at 19,729.5 up 229 points or 1.17%, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. The Indian equity market remained closed on Tuesday during Diwali Balipratipada. Previously, on Monday, the NSE Nifty 50 dropped 82 points or 0.42% to settle at 19,443.55, while the BSE Sensex fell 325.58 points or 0.50% to 64,933.87.

“Markets started the week on a feeble note and lost nearly half a percent, tracking weak global cues. After the gap-down start, Nifty traded under pressure in the first hour however resilience in select heavyweights capped the decline as the session progressed. Meanwhile, a mixed trend across the key sectors kept the traders occupied, wherein energy and metal closed higher while IT, FMCG and pharma were among the top losers. Amid all, the broader indices maintained their outperformance as the smallcap index gained over half a percent,” said Ajit Mishra, SVP – Technical Research, Religare Broking.

Key things to know before share market opens on November 15, 2023

Wall Street

The S&P 500 and Nasdaq posted their biggest daily percentage gains since April 27 on Tuesday as softer-than-expected inflation data supported the view that the Federal Reserve may be done raising interest rates, reported Reuters. The tech-heavy Nasdaq Composite soared 326.64 points or 2.37% at 14,094.38. The S&P 500 climbed 84.15 points or 1.91% at 4,495.7, while the Dow Jones Industrial Average jumped 489.83 points or 1.43% to 34,827.7.

US Inflation Data

US consumer prices were unchanged in October as Americans paid less for gasoline, and the annual rise in underlying inflation was the smallest in two years, bolstering the view that the Federal Reserve was probably done raising interest rates, reported Reuters. Though rents continued to rise last month, the pace of the increase slowed considerably from September. The softer-than-expected inflation readings reported by the Labor Department’s Bureau of Labor Statistics (BLS) on Tuesday pushed US Treasury yields lower and sparked a stock market rally.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.09% at 104.14.

Crude Oil

WTI crude prices are trading at $78.26 down 0.03%, while Brent crude prices are trading at $82.50 down 0.04%, on Wednesday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in the green on Wednesday morning. The Asia Dow is trading up 1.89%, Japan’s Nikkei 225 is up 2.03%, Hong Kong’s Hang Seng index is trading up 2.21% and the benchmark Chinese index Shanghai Composite is up 0.50%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 1,244.44 crore, while domestic institutional investors (DII) added shares worth net Rs 830.40 crore on November 13, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Hindustan Copper, Indiabulls Housing Finance, SAIL, Chambal Fertilisers and Chemicals, Delta Corp, Manappuram Finance, and Zee Entertainment Enterprises to its F&O ban list for November 15, 2023.

Technical View

Commenting on the Technical outlook of Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said,”The Nifty opened gap down and has been consolidating broadly in the range of 19,300 – 19,550 since past seven trading sessions. During the Muhurat trading session it broke out the range on the upside however it did not witness follow through buying interest and has come back within the broad range. We believe until the extremes of the range 19,300 – 19,550 are not breached decisively on either side the consolidation is likely to continue. Stocks specific action likely to continue during this phase. In terms of levels, 19,310 – 19,290 is the crucial support zone while 19,470 – 19,500 is the immediate hurdle zone from short term perspective.”

Bank Nifty outlook

Bank Nifty index dropped 105.40 points or 0.24% to settle at 43,891.25 on Monday. “Bank Nifty was unable to maintain levels above the psychological milestone of 44,000 and concluded its session below this mark. Nevertheless, the index managed to close above the crucial moving average. Additionally, the Relative Strength Index (RSI) is exhibiting a bullish crossover. In the short term, it is anticipated that the index will exhibit sideways movement. Support is positioned at 43,500 on the lower end, while resistance is noted at 44,200 on the higher end,” said Rupak De, Senior Technical analyst at LKP Securities.