GIFT Nifty traded up 67.5 points, or 0.35%, at 19,494, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Friday, the NSE Nifty 50 fell 82.05 points or 0.42% to settle at 19,542.65, while the BSE Sensex shed as much as 231.62 points to 65,397.62.
“Middle East tensions and elevated US bond yields steered the market to a consolidation path this week. A weak start to the earnings season, disappointment from the IT sector, and a mixed bag of results from banks influenced investors to book profits from the table. FIIs continued to withdraw funds as the US Fed Chair emphasised the imperative for continued monetary tightening policy and hold interest rate high. Investors are likely to remain cautious in the near term due to concerns about the long implication of geopolitical tensions in the Middle East,” said Vinod Nair, Head of Research at Geojit Financial Services.
Key things to know before share market opens on October 23, 2023
Wall Street
US stocks ended sharply lower for the day and week on Friday as investors worried about more interest rate hikes and the Israel-Hamas conflict spreading, reported Reuters. The tech-heavy Nasdaq Composite tanked 202.37 points, or 1.53%, to 12,983.81. The S&P 500 plunged 53.84 points, or 1.26%, to 4,224.16, while the Dow Jones Industrial Average dropped 286.89 points, or 0.86%, to 33,127.28.
US Dollar
US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded up 0.07% at 106.24.
Crude Oil
WTI crude prices are trading at $87.30, down 0.89%, while Brent crude prices are trading at $91.53, down 0.68%, on Monday morning.
Asian Market
Shares in the Asia-Pacific region are trading in red on Monday morning. The Asia Dow is trading down 0.35%, the benchmark Chinese index, the Shanghai Composite, is down 0.82% and Japan’s Nikkei 225 is down 0.40%. Meanwhile, Hong Kong’s Hang Seng index is also down 0.72%.
FII, DII Data
Foreign institutional investors (FII) purchased shares worth net Rs 456.21 crore, while domestic institutional investors (DII) added shares worth net Rs 8.53 crore on October 20, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Indiabulls Housing Finance to its F&O ban list for October 23, 2023.
Technical View
Commenting on the technical outlook of Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts we can observe that Nifty is trading at the crucial support zone of 19,530 – 19,500 where 61.82% Fibonacci retracement level of rise from 19,333 – 19,850 is placed. The hourly momentum indicator is showing a positive divergence however price confirmation is missing. The daily momentum indicator has triggered a negative crossover which is a sell signal. Considering prices are trading at crucial support levels only a breach below 19,500 – 19,450 zone shall lead to a sharp decline.
“In terms of levels, 19,550 – 19,500 is the crucial support zone while 19,640 – 19,660 shall act as an immediate hurdle zone. Today the fall was more evident in the broad market with the Midcap index was down 1%. The fall appears a bit overstretched in the short term and we expect a pullback during the next week,” Jatin Gedia added.
Bank Nifty Outlook
The Bank Nifty index shed 31.45 points, or 0.07% to end the week’s last trading session at 43,723.05 on Friday. “The Bank Nifty index has been locked in a persistent struggle between bullish and bearish forces, resulting in a period of consolidation that has extended for the past two days. The index is currently teetering at a crucial ‘make or break’ point. The level of 43,500 is regarded as decisive. A breach below the 43,500 level is anticipated to trigger additional selling pressure in the market. On the other hand, if this level manages to hold on a closing basis, it could prompt a substantial short-covering rally. The potential target for such a move is around 44,500, where there is a notable accumulation of open interest on the call side,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
