Nifty to remain range-bound or rise above 18,650- See SGX Nifty, FII data, US shares, more before market opens

Nifty to remain range-bound or rise above 18,650? See SGX Nifty, FII data, US shares, more before market opens

The SGX Nifty recorded a gain of 0.27% during Tuesday’s early trading session, with a value of 18,748 indicating a positive opening for the domestic indices NSE Nifty 50 and BSE Sensex. On Monday, NSE Nifty 50 and BSE Sensex ended the trading session with gains, snapping a two-day losing streak. Nifty 50 closed at 18,601, up by 38 points while Sensex recorded a gain of 99 points, at 62,725.

“The domestic indices are moving with caution as investors step up to a data-loaded week both in the domestic and global markets. However, the expectations are optimistic, like the Indian CPI data is forecasted to moderate and the Fed & BoJ are expected to maintain their policy rates. Other major events on the centre stage are domestic IIP, WPI inflation, and policy announcements from ECB. The market anticipates ECB to increase their rates further while recessionary risk is rising,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading mixed. China’s Shanghai Composite declined 0.11% in trade, while Japan’s Nikkei 225 jumped 1.56%. Hong Kong’s Hang Seng index fell 0.16% while South Korea’s Kospi added 0.28%. The Taiwan Weighted index surged 1.31%.

Crude Oil

Oil prices inched higher on Tuesday on bargain hunting, recovering some ground from the previous day’s plunge, but gains were limited as investors remained cautious ahead of key policy decisions by the U.S. Federal Reserve and other central banks.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth net Rs 626.62 crore, while domestic institutional investors (DII) net purchased shares worth net Rs 1,793.85 crore on June 12, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has IEX, India Cements, Delta Corp and Indiabulls Housing Finance securities on its F&O ban list for 13 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 index has closed in the negative for the third consecutive day. It is trading around the lower end of the rising channel and also the 20-day moving average (43,980). We expect the Bank Nifty to hold on to this support and resume its upmove. The short-term target is placed at 44,500,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas. 

Technical View

“Technically, the NSE Nifty 50 hovered between 18,560 to 18,630, and the narrow range activity clearly indicates indecisiveness between the bulls and bears. For traders, 18,550 would be the immediate support level, above which the index could move up till 18,650-18,700. On the other hand, a fresh sell-off is possible only after the dismissal of 18,550. Below the same, the index could slip till 18,500-18,450,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

May CPI data

India’s retail inflation fell to a 25-month low of 4.25% in May on account of softening prices of food and fuel items.

India’s Industrial Production

India’s industrial production growth rose to 4.2% in April from 1.7% in March 2023, mainly due to good performance by the manufacturing and mining sector. The factory output growth measured in terms of the Index of Industrial Production (IIP) stood at 6.7% in April 2022.