Will Nifty trade above 22,000 mark to hit a fresh high? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Monday. {Photo: Freepik}

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Monday. Here is all you need to know before the market opens.

GIFT Nifty traded up by 69 points or 0.31% at 22,044 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 gained 247.35 points or 1.14% to settle at 21,894.55, while the BSE Sensex ended higher by 847.27 points or 1.18% to 72,568.45.

“Market ended a 2-week long consolidation phase on Friday and gained over a percent. Buoyancy in the IT heavyweights triggered a firm start, which further strengthened with buying in heavyweights across sectors. Consequently, the Nifty index settled around the day’s high at 21,894.55; up by 1.14%. Apart from the IT pack, realty and PSU also posted decent gains while auto and pharma traded subdued. Amid all, the broader indices underperformed the benchmark but still managed to end with modest gains,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.

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Mishra also added that, We are now eyeing 22,150 in Nifty however selective participation from banking could keep the momentum in check. We suggest focusing on other key sectors and using any pause or dip to accumulate quality names. Needless to say, the volatility would remain high due to earnings and mixed global cues so plan the overnight trades accordingly.

Key things to know before share market opens on January 15, 2024

Wall Street

U.S. Treasury two-year yields dropped to the lowest level since May, while stocks came under pressure as a surprise decline in producer prices reinforced bets on Federal Reserve rate cuts this year, Bloomberg reported. The tech-heavy Nasdaq Composite gained by just 2.58 points or 0.02% at 14,972.76. The S&P 500 surged by 3.59 points or 0.08% at 4,783.83, while the Dow Jones Industrial Average trading down by 118.04 points or 0.31% at 37,592.98.

US Dollar 

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.10% at 102.50.

Crude Oil 

WTI crude prices are trading at $72.44 down by 0.33%, while Brent crude prices are trading at $78.22 down by 0.09%, on Monday morning.

Asian Markets

Shares in the Asia-Pacific region are trading in mixed territory on Monday morning. The Asia Dow is trading up by 1.09%, Japan’s Nikkei 225 is green, up by 1.50%, Hong Kong’s Hang Seng index is trading down by 0.35% and the benchmark Chinese index Shanghai Composite is trading lower by 0.16%.

FII, DII Data

Foreign institutional investors (FII) offloaded shares worth net Rs 340.1 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,911.2 crore on January 12, 2023, according to the provisional data available on the NSE.

F&O Ban

The NSE has added Bandhan Bank, Bharat Heavy Electronics, Chambal Fertilizers, Delta Corp, Escorts Kubota, Hindustan Copper, India Cements, Indus Tower, Metropolis Healthcare, National Aluminium, Piramal Enterprise, Polycab India, PVRINOX, SAIL, and Zee Entertainment to its F&O ban list for January 15, 2024.

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Technical View

Commenting on the Technical outlook of  Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said The Nifty index exhibited significant strength, securing a notable breakout on the daily chart as it surpassed the key resistance level of 21,800. This bullish move positions the index for potential short-term targets of 22,000 and 22,200. Traders are advised to consider buying opportunities on any dips toward the support level. The momentum indicator RSI has also provided a buy crossover, further confirming the bullish sentiment in the market.

Bank Nifty Outlook

“The Bank Nifty index displayed strength by overcoming the initial hurdle at 47,500, signaling potential upward movement towards the next resistance level at 48,000. A decisive breach of 48,000 is crucial, as it could trigger substantial short covering, propelling the index towards the 50,000 mark. The lower support is evident at 47,000, a level marked by significant put writing,” said  Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.