GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Wednesday. Here’s a look at the key stocks to watch in trade.
GIFT Nifty traded up by 86.50 points or 0.40% at 21,614.50, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 gained 34.45 points or 0.16% to settle at 21,453.10, while the BSE Sensex ended higher by 122.10 points or 0.17% to 71,437.19.
“Markets remained range bound and settled marginally higher amid mixed signals. After the flat start, the Nifty index drifted lower in the first hour despite the favorable global cues, however buying in select heavyweights trimmed all the losses as the day progressed. Among the key sectors, energy and FMCG were among the top performers while IT and metal settled lower. The broader indices too witnessed a muted session and ended flat to marginally in the red,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd
Mishra also added that, We are seeing buying interest on every dip in the index and that reaffirms our bullish view. The defensive viz. FMCG and pharma are doing well on the expected lines however participation of rate sensitives would be essential to trigger the next leg of up move. Meanwhile, it is critical to identify the pattern of rotational buying across sectors and place the trading positions accordingly.
Key things to know before share market opens on December 20, 2023
Wall Street
U.S. equities maintained their upward momentum as bond yields declined following unexpected housing data. Traders are speculating that the Federal Reserve is likely to pursue a gradual economic slowdown strategy, leading to anticipation of rate cuts, reported Bloomberg. The tech-heavy Nasdaq Composite gaied 84.32 points or 0.57% at 14,989.13. The S&P 500 jumped 22 points or 0.46% at 4,762.56, while the Dow Jones Industrial Average ended higher by 197.37 points or 0.53% to 37,503.39.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.03% at 102.20.
Crude Oil
WTI crude prices are trading at $74.10 up 0.22%, while Brent crude prices are trading at $79.18 down by 0.06%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in the positive territory on Wednesday morning. The Asia Dow is trading up by 0.59%, Japan’s Nikkei 225 is green, up 1.24%, Hong Kong’s Hang Seng index is trading down 0.75% and the benchmark Chinese index Shanghai Composite is trading flat slightly higher by 0.05%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 601.5 crore, while domestic institutional investors (DII) bought shares worth net Rs 294.3 crore on December 19, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Hindustan Copper, India Cements, Manappuram Finance, National Aluminium Company, SAIL, and ZEEL 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, Nifty found support just above the 21EMA on the hourly chart, prompting a strong recovery in the latter part of the session. The momentum indicator maintains a positive crossover, suggesting ongoing strength. The bullish trend is expected to persist as long as it stays above 21350 consistently. On the upper side, Nifty is likely to encounter resistance from call writers at 21500. A definitive breakthrough above 21500 could potentially initiate a substantial market rally; until then, consolidation appears probable
Bank Nifty Outlook
“The Bank Nifty index maintained its consolidation phase within a range but needs to close above the crucial level of 48000 to sustain the upward momentum. The lower-end support is positioned at 47800, and a decisive break below this level on a closing basis may trigger additional selling pressure in the market,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.