GIFT Nifty traded down 0.60% at 19,651, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Friday, the NSE Nifty 50 gained 0.55% to settle at 19,653.50, while the BSE Sensex added as much as 263.06 points to 65,995.63.
“Markets ended higher for the second straight day as RBI kept the key repo rate unchanged, while maintaining the ‘withdrawal of accommodation’ stance. The positive takeaway was that Nifty recouped all of its last 3-days losses on the back of firm global cues. Sentiments got a lift after US Treasury yields retreated and as oil prices plummeted. Technically, Nifty’s biggest hurdles for Monday’s trading session is seen at the 19707 mark, while confirmation of strength is only above the 19907 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Key things to know before share market opens on October 9, 2023
Wall Street
Wall Street ended in green on Friday. The tech-heavy Nasdaq Composite surged 211.51 points, or 1.60%, to 13,431.34. The Dow Jones Industrial Average gained 288.01 points, or 0.87%, to 33,407.58, while the S&P 500 added 50.31 points, or 1.18%, to 4,308.5.
US Dollar
The US Dollar index, which measures the currency’s strength against a basket of six rivals, is up 0.17% at 106.22 during Monday Morning.
Crude Oil
WTI crude prices are trading at $86.39, up 4.35%, while Brent crude prices are trading at $87.97, up 4.14%, on Monday morning.
Israeli, Saudi Markets
Israeli stock and bond prices slid and many businesses were closed on Sunday, a day after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others, according to Reuters.
Key Tel Aviv share indices (TA125), (TA35) ended nearly 7% lower, led by a 9% drop in banking shares (TELBANK5) on turnover of 2.2 billion shekels ($573 million), and government bond prices fell as much as 3% in the market’s initial response to the bloodiest attack on Israel in decades.
Major stock markets in the Gulf tumbled on Sunday amid worries that rising conflict between Palestinian group Hamas and Israel threatens to spiral, according to Reuters. Saudi Arabia’s benchmark index (TASI) slumped 1.6%, the sharpest decline in 10 months. The Qatari index (QSI) fell for a third straight session, ending 0.6% lower, with most sectors in the red.
Asian Market
Shares in the Asia-Pacific region are trading on a mixed note on Monday morning. The Asia Dow is trading up 0.23%, whereas the benchmark Chinese index, the Shanghai Composite, is down 1.13%, while Japan’s Nikkei 225 is also down 0.26%. Meanwhile, Hong Kong’s Hang Seng index is up 1.58%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 90.29 crore, while domestic institutional investors (DII) added shares worth net Rs 783.25 crore on October 6, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Punjab National Bank, Indiabulls Housing Finance, Delta Corp, and Manappuram Finance to its F&O ban list for October 9, 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 the Nifty has managed to close above the 40-day moving average (19,610) which is a Bullish sign. On the weekly charts we can observe that the Nifty has closed in the green and in term of pattern it has formed a Dragonfly Doji which has bullish implications. We expect this pullback to continue till 19,778 – 19,800 where resistance in the form of the 50% Fibonacci retracement level and the 20-day moving average is placed. In the case of a dip towards 19,530 – 19,580 it should be used as a buying opportunity.
Bank Nifty Outlook
On Friday, the Bank Nifty index added as much as 147.25 points, or 0.33%, to settle at 44,360.60. “Bank Nifty struggled to regain ground above the ascending trendline on the daily chart, indicating a bearish trend in the banking sector. Additionally, the index has consistently remained below crucial moving averages, further confirming this weak trend. Looking ahead, a significant breakthrough above 44,550 could potentially propel the index towards 45,000 and beyond. On the downside, support is located at 44,200,” said Rupak De, Senior Technical analyst at LKP Securities.
