Nifty to cross 18800 on RBI MPC outcome or snap 4-day winning streak- See 9 things to know before market opens

Nifty to cross 18800 on RBI MPC outcome or snap 4-day winning streak? See 9 things to know before market opens

The SGX Nifty recorded a marginal gain of 0.07% during Thursday’s trading session, with a value of 18,824.5, indicating a flat opening for the domestic indices NSE Nifty 50 and BSE Sensex. The equity indices are moving towards all-time highs as Nifty 50 closed yesterday at 18,726, higher by 127 points, and Sensex concluded the day at 63,142.96, jumping 0.56%.

“Investors are becoming more optimistic due to the anticipation of a positive revision in the RBI’s inflation forecast during the ongoing MPC meeting. It is expected that the RBI will maintain its pause on rate hikes, considering the significant improvement in inflation, which has now come within the RBI’s comfort zone. Furthermore, the participation of FIIs as net buyers, after a brief halt, contributed to today’s market rally, particularly driven by mid- and small-cap stocks,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the red. China’s Shanghai Composite declined 0.46% in trade, while Japan’s Nikkei 225 was flat, down 0.06%. Hong Kong’s Hang Seng index tanked 0.7% while South Korea’s Kospi fell by 0.29%. The Taiwan Weighted index slipped 0.61%.

Crude Oil

Oil prices closed Wednesday’s trade about 1% higher as Saudi Arabia’s plans for deep production cuts offset demand woes stemming from rising U.S. fuel stocks and weak Chinese export data.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth net Rs 1,382.57 crore, while domestic institutional investors (DII) net bought shares worth net Rs 392.30 crore on June 7, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Manappuram Finance, India Cements, Indiabulls Housing Finance securities on its F&O ban list for 8 June. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Bank Nifty Outlook

“The Bank Nifty’s undertone is still bullish, maintaining the support of 44,000 in a spot where a decent amount of Put writing is seen and resistance is still intact at 44,500. After the central bank policy, the Bank Nifty is expected to give a move on either side,” said Rupak De, Senior Technical, LKP Securities.

Technical View

“The Nifty is all set to move into all time highs in the short term and that could possibly open sharp upside momentum for the market ahead. Positive chart patterns like higher tops and bottoms continued as per daily chart and present up move is in line with the new higher top of the sequence. There is no confirmation of any higher top reversal as of now. Immediate support is to be watched at 18,650 levels and the immediate resistance is around 18,900 levels for the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Currency outlook

“Rate hikes by BoC and RBA influence US Treasury bond yields, signaling global central bank response to persistent inflation. DXY continues to find resistance at 104.50 levels. Expecting a status quo from India’s monetary policy. Continue to keep an eye on USDCNH. For USDINR, 82.45 acts as a support while 82.80 a resistance,” said Kunal Sodhani, VP, Global Trading Center, Shinhan Bank.

RBI Policy

The Reserve Bank of India’s monetary policy verdict is to be announced later today. Analysts and experts expect that the RBI MPC will continue with the ‘non-committal’ pause on changing the nation’s key lending rate.