GIFT Nifty traded flat at 19,463.5 down merely 4 points or 0.02%, indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously on Monday, the NSE Nifty 50 soared 181.15 points or 0.94% to settle at 19,411.75, while the BSE Sensex added as much as 594.91 points to 64,958.69.
“Markets started the week on a firm note and gained nearly a percent, in continuation of the recent rebound. After the gap-up start, Nifty oscillated in a narrow range for most of the day and finally settled around the day’s high at 19398 levels. All the key sectors contributed to the move wherein metal, energy and pharma gained over a percent each. The broader indices also traded in tandem and rose in the range of 0.9%-1.3%,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
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“Markets are largely mirroring the rebound of the US markets and look set to test the hurdle at 19,500 in Nifty. Going ahead, sustainability of the positive tone on the global front combined with improved participation from the banking pack would be critical. Meanwhile, we maintain our view to stay focused on stock selection,” Ajit Mishra added.
Will Nifty trade above 24,800, or will it experience profit booking? See GIFT Nifty, FII data, F&O ban, crude, more before market opens Will Nifty trade above 24,800 ahead of weekly expiry? See GIFT Nifty, FII data, F&O ban, crude, more before market opens Will Nifty scale up to 24,500 or see profit booking from higher levels? See GIFT Nifty, FII data, F&O ban, crude, more before market opens Will Nifty break the losing streak and bounce back to 24,500? See GIFT Nifty, FII data, F&O ban, crude, more before market opens
Key things to know before share market opens on November 7, 2023
Wall Street
US stocks closed slightly higher on Monday as investors awaited guidance from a host of Federal Reserve policymakers later in the week on the central bank’s policy path, with a large amount of bond supply also due to hit the market, reported Reuters. The tech-heavy Nasdaq Composite added 40.50 points or 0.30% at 13,518.78. The S&P 500 rose 7.64 points or 0.18% at 4,365.98, while the Dow Jones Industrial Average gained 34.54 points, or 0.10%, to 34,095.86.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.10% at 105.33.
Crude Oil
WTI crude prices are trading at $80.56 down 0.35%, while Brent crude prices are trading at $84.89 down 0.34%, on Tuesday morning.
Asian Market
Shares in the Asia-Pacific region are trading in the red on Tuesday morning. The Asia Dow is trading down 0.59%, Japan’s Nikkei 225 is down 0.67%, the benchmark Chinese index Shanghai Composite is down 0.27% and Hong Kong’s Hang Seng index is also trading down 68%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 549.37 crore, while domestic institutional investors (DII) added shares worth net Rs 595.70 crore on November 6, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Gujarat Narmada Valley Fertilizers and Chemicals on its F&O ban list for November 7, 2023.
Technical View
Commenting on the technical outlook of the NSE Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said,”On the daily charts we can observe that the nifty opened gap up for the second consecutive day and has been stretching towards the psychological level of 19,500. The daily momentum indicator has a positive crossover which is a buy signal. The Nifty is currently trading around the upper end of the reverse channel which can act as a make or break from short term perspective. A decisive close above the falling channel can lead to further extension of the current rally. However, there are multiple resistance parameters in the form of the key daily moving averages in the range (19,400 – 19,500) which can restrict further upside. In terms of levels, 19,240 – 19,300 shall act as a crucial support zone while 19,500 – 19,550 is the immediate hurdle zone.
Bank Nifty Outlook
Bank Nifty index added 301.15 points or 0.70% to 43,619.40 on Monday. “The Bank Nifty stayed positive throughout the day. On the higher side, the index closed above the 21-day moving average (21DMA). The trend is expected to remain sideways to positive in the near term. Support on the lower end is located at 43,300 points. On the higher end, a move above 43,700 points could trigger a rally towards 44,500 points,” said Rupak De, Senior Technical analyst at LKP Securities.
