Will global cues and local dynamics help Nifty scale above 19850? 9 things to know before share market opens

GIFT Nifty traded up 34 points or 0.17% at 19,869, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Friday, the NSE Nifty 50 slipped 7.30 points or 0.04% to settle at 19,790.55, while the BSE Sensex dropped 47.77 points or 0.07% to 65,970.04.

“Nifty closed in a narrow 29-point closing range over the last 4 days (19,783-19,812). This shows the tug of war between the bulls and bears. On weekly charts, Nifty gained 0.32%. Nifty has faced resistance from 19,875 over the last two weeks. Hence only when this is breached, further upmove may happen. On the downside, 19,547 could act as a support in the near term,” said Deepak Jasani – Head Retail Research, HDFC Securities.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.03% at 103.17.

Crude Oil

WTI crude prices are trading at $75.11 up 0.33%, while Brent crude prices are trading at $80.22 up 0.30%, on Tuesday morning.

S&P Global raises India’s growth forecast

S&P Global Ratings on Monday raised India’s growth forecast for the current financial year to 6.4%, from 6%, saying that robust domestic momentum has offset headwinds from high food inflation and weak exports. The US-based rating agency, however, has cut growth estimates for the next fiscal (2024-25) to 6.4%, as it expects growth to slow in the second half of the current fiscal, on higher base impact and subdued global growth. “We have revised up our projection for India’s GDP growth for fiscal 2024 (ending in March 2024) to 6.4%, from 6%, as robust domestic momentum seems to have offset headwinds from high food inflation and weak exports, the rating agency said.

Asian Markets

Shares in the Asia-Pacific region are trading broadly in red on Tuesday morning. The Asia Dow is trading down 0.09%, Japan’s Nikkei 225 is down 0.23% and the benchmark Chinese index Shanghai Composite is down 0.10%, while Hong Kong’s Hang Seng index is trading up 0.09%.

FII, DII Data

Foreign institutional investors (FII) purchased shares worth net Rs 2,625.21 crore, while domestic institutional investors (DII) added shares worth net Rs 134.46 crore on November 24, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE added Balrampur Chini Mills, Hindustan Copper, Hindustan Petroleum Corporation, Indiabulls Housing Finance, Zee Entertainment, BHEL and Granules India to its F&O ban list for November 28, 2023. 

Technical View

Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, “On the daily charts, we can observe that the consolidation between 19,620 – 19,875 has been going on for the past seven trading sessions. the daily momentum indicator has a positive crossover and thus this consolidation should be used as a buying opportunity. On the downside, until the zone of 19,630 – 19,600 is held we can expect the upside momentum to resume over the next few trading sessions which can take the Nifty towards the 19,900 – 19,930 zone.”

Bank Nifty Outlook

Bank Nifty index gained over 191.60 points or 0.44% to settle at 43,769.10 on Friday. “Following RBI’s tightening measures, the Bank Nifty has consolidated at lower levels, with four of the five largest banks dropping below their 200DMA. The sentiment appears sideways in the short term. The level of 44,000 is poised to remain a pivotal point; a decisive move above this mark could potentially trigger a substantial rally for the index. On the downside, visible support resides around 43,500,” said Rupak De, Senior Technical analyst at LKP Securities.