GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Tuesday. Here’s a look at the key stocks to watch in trade.
GIFT Nifty traded slightly down by 13.50 points or 0.06% at 21,470.50, indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 dropped 38 points or 0.18% to settle at 21,418.65, while the BSE Sensex ended lower by 168.66 points or 0.24% to 71,315.09.
“Markets started the week on a muted note and ended marginally lower, taking a breather after the recent surge. After the initial downtick, the Nifty oscillated in a narrow range and finally settled at 21418.65 levels. Meanwhile, a mixed trend across sectors kept the traders occupied wherein pharma and metal performed well while realty, banking and IT witnessed profit taking. We had a similar trend on the broader front too wherein midcap closed flat and smallcap gained over half a percent,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd
Mishra also added that, We maintain our bullish view and suggest focusing on buying opportunities amid consolidation. At the same time, traders shouldn’t get carried away with the prevailing momentum and stick with the fundamentally sound counters. Apart from the preferred set viz. banking and IT, we feel stocks from FMCG, pharma and metal can do well so align trades accordingly.
Key things to know before share market opens on December 19, 2023
Wall Street
U.S. stocks kicked off the week on a positive note buoyed by a burst of deals, even as Federal Reserve officials sought to sow doubts that aggressive interest rate cuts will materialise early next year, Bloomberg reported. The tech-heavy Nasdaq Composite gained 90.89 points or 0.61% at 14,904.81. The S&P 500 jumped 21.37 points or 0.45% at 4,740.56, while the Dow Jones Industrial Average ended flat slightly higher by 0.86 points or 0.02% to 37,306.02.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded slightly lower by 0.04% at 102.51.
Crude Oil
WTI crude prices are trading at $72.84 up 0.03%, while Brent crude prices are trading at $77.97 up 0.02%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in the negative territory on Tuesday morning. The Asia Dow is trading down 1.10%, Japan’s Nikkei 225 is red, down 0.08%, Hong Kong’s Hang Seng index is trading down 0.98% and the benchmark Chinese index Shanghai Composite is down by 0.40%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 33.5 crore, while domestic institutional investors (DII) bought shares worth net Rs 413.9 crore on December 18, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added NALCO, Balrampur Chini Mills, Hindustan Copper, India Cements, Manappuram Finance, SAIL and Zee Entertainment Enterprises to its F&O ban list for December 19, 2023.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical analyst at LKP Securities, said, On the daily chart, the Nifty has formed a Bearish Harami candlestick pattern, suggesting a potential interruption in the ongoing rally. Additionally, the RSI indicator on the hourly timeframe has undergone a bearish crossover within the oversold zone, hinting at a waning bullishness in the market. A decline below 21350 could lead a correction towards 21220/21100 in the short term. Conversely, resistance is anticipated at 21500 on the higher end.
Bank Nifty Outlook
“The Bank Nifty index encountered resistance around the 48000 level, resulting in an inability to sustain at those higher levels, leading to some selling pressure. The immediate support for the index is positioned at 47800. A breach below this level could intensify the selling pressure, potentially pushing the index towards the 47400/47000 marks,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
