Nifty to top 18,888 or give up gains- See SGX Nifty, FII data, US shares, crude oil, more before market opens

Nifty to top 18,888 or give up gains? See SGX Nifty, FII data, US shares, crude oil, more before market opens

The SGX Nifty recorded a 0.15% loss during Thursday’s early trading session, with a value of 18,881.5 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Wednesday, Sensex touched a fresh life-time high of 63,588.31, after which, the benchmark trimmed some gains and settled 0.31% higher. Nifty 50 gained 40.15 points to 18,856.85.

“Despite hitting record highs, the domestic market failed to sustain its upward trajectory due to prevailing concerns over global issues and a delayed monsoon. Furthermore, market volatility was exacerbated by consecutive days of net selling by FIIs, while mid-cap stocks maintained their steady gains. Meanwhile, in the global market, sentiments were dampened as UK CPI inflation came in hotter than expected, adversely affecting investor confidence,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the red on Thursday, following negative cues from Wall Street. China’s Shanghai Composite tanked 1.31% in trade, while Japan’s Nikkei 225 slipped 0.13%. Hong Kong’s Hang Seng index crashed 1.98% while South Korea’s Kospi was higher by 0.44%. The Taiwan Weighted index recorded minor gains of 0.1%.

Crude Oil

Oil prices held on to most of the previous day’s gains in early trade on Thursday as markets weighed an unexpected draw in U.S. crude oil stocks against the prospect of weaker demand after the Federal Reserve chairman hinted at further interest rate hikes.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth net Rs 4,013.10 crore, while domestic institutional investors (DII) net bought shares worth net Rs 550.36 crore on June 21, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Hindustan Aeronautics (HAL), Hindustan Copper, Bharat Heavy Electricals (BHEL), L&T Finance Holdings, Punjab National Bank, and Delta Corp securities on its F&O ban list for 22 June. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 80% 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 index is currently witnessing a continued battle between the bulls and the bears. It has a support level at 43,500, which is indicated by the presence of maximum put writing. On the other hand, there is resistance at 44,000Ce, where the highest open interest is seen on the call side. Within the range, it is advisable to adopt a buy-on-dip approach,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Technical View

“NSE Nifty 50 is currently placed at the edge of moving into new all time high above 18,887 levels. The market is repeatedly making an attempt to witness an upside breakout, but was not able to succeed due to lack of strength at the hurdle. The underlying trend of Nifty continues to be positive with range bound movement. A decisive move above 18,900 levels is expected to open the next upside towards 19,100-19,200 levels in the near term. Immediate support is at 18,730 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

Currency Outlook

“The rupee traded within a narrow range of 81.98 to 82.12. The market witnessed range-bound trading, with selling pressure observed in USDINR due to positive participation in the capital market and profit booking in the dollar index, which approached the 102.50 level,” said Jateen Trivedi, VP Research Analyst at LKP Securities.