Will Nifty test 21,500 levels or dip ahead? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a flat opening on Tuesday. Here are the top things to know before the market opens.

GIFT Nifty traded up by just 14 points or 0.07% at 21,409, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Friday, the NSE Nifty 50 gained 94.35 points or 0.44% to settle at 21,349.05, while the BSE Sensex ended higher by 214.86 points or 0.34% to 71,106.96.

Mishra also added that, The last two days of the rebound in the index have eased pressure and it would be a healthy consolidation if Nifty spends some time around the current levels. We are seeing volatility across the sectors so traders should maintain extra caution in stock selection and overnight risk management. And, we feel it is prudent to stick with index majors over midcap and smallcap counters.

Key things to know before share market opens on December 26, 2023

Wall Street

U.S. stocks stayed on track for an eight-week bull run after inflation readings reinforced Wall Street’s conviction in early and deep rate cuts next year, reports Bloomberg. The tech-heavy Nasdaq Composite gained 25.16 points or 0.18% at 14,989.03. The S&P 500 jumped 5.53 points or 0.12% at 4,752.28, while the Dow Jones Industrial Average dropped 14.72 points or 0.04% to 37,389.63.

US Dollar

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.04% at 101.67.

Crude Oil

WTI crude prices are trading at $73.90 up 0.02%, while Brent crude prices are trading at $79.41 up by 0.02%, on Friday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in the mixed territory on Tuesday morning. The Asia Dow is trading down by 0.42%, Japan’s Nikkei 225 is red, down by 0.03%, Hong Kong’s Hang Seng index is trading down 1.69% and the benchmark Chinese index Shanghai Composite is trading higher by 0.14%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 2,828.9 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,166.7 crore on December 22, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Ashok Leyland, Balrampur Chini Mills, Delta Corp., Hindustan Copper, India Cements, Indus Tower, National Aluminium, and SAIL to its F&O ban list for December 26, 2023.

Technical View

Commenting on the Technical outlook of Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, The Nifty index displayed volatile movements on the last day of the week but managed to close above the crucial level of 21300. The lower-end support for the index is positioned at 21200, presenting a buying opportunity on any dips toward this level. Sustaining above 21300 could pave the way for further upside momentum, targeting the 21500 level.

Bank Nifty Outlook

“The Bank Nifty index faced selling pressure on the last day but managed to hold the key support level of 47400. If the index fails to sustain above this support, it could witness further decline toward the 47100 levels. On the upside, the immediate resistance is at 47700, and a breakout above this level may trigger short-covering, pushing the index higher toward 48000/48200 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.