Will Nifty top 18,800 or fall in trade- See SGX Nifty, FII data, US Fed verdict, more before market opens

Will Nifty top 18,800 or fall in trade? See SGX Nifty, FII data, US Fed verdict, more before market opens

The SGX Nifty recorded a loss of 0.05% during Thursday’s early trading session, with a value of 18,826 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Wednesday, continuing their upward momentum for the third day, the domestic indices NSE Nifty 50 and BSE Sensex recorded gains, ending the day in positive territory. Nifty 50 rose 0.21% to 18,756 and BSE Sensex gained 85 points to 63,228.

“The domestic indices rebounded after an initial phase of profit booking, driven by encouraging WPI inflation data and positive global cues, while selling in IT and banking stocks kept a check on gains. The favourable decline in US inflation, driven by lower energy prices, and speculation about a potential pause in the Fed rate hike campaign, brought comfort to global equities. However, the persistence of higher core inflation levels may compel the Fed to maintain its hawkish tone during today’s policy announcement with indication of a prolonged pause,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Wednesday, following positive cues from Wall Street. China’s Shanghai Composite advanced 0.13% in trade, while Japan’s Nikkei 225 gained 0.12%. Hong Kong’s Hang Seng index jumped 1.07% while South Korea’s Kospi was down by 0.35%. The Taiwan Weighted index clocked gains at 0.33%.

Crude Oil

Oil prices edged higher on Thursday, recovering some ground from the previous day’s plunge on worries about future U.S. interest rate hikes, with markets now looking to key Chinese economic data for demand indications.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth net Rs 1,714.72 crore, while domestic institutional investors (DII) net offloaded shares worth net Rs 654.77 crore on June 14, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has IEX, India Cements, Delta Corp, BHEL, Manappuram Finance, ZEEL and Indiabulls Housing Finance securities on its F&O ban list for 14 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 is currently in a phase of sideways consolidation as market participants awaited the Federal Reserve (Fed) policy announcement. This consolidation indicates a lack of a clear directional bias in the market. On the downside, the index has a support level at 43,700, which has held during the consolidation phase and can act as a potential floor for prices. On the upside, the index faces resistance around the 44,300 level, which has limited the upward movement,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Technical View

“Nifty formed a high wave type candle at the highs suggesting upside volatility. A move below the low of June 14 (18,690) could lead to a faster move on the downside. On the other hand, a move above 18,782 could lead to a new high formation in the next few sessions,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

US Federal Reserve

The US Federal Reserve did not alter the interest rates, but signalled in new projections that the key lending rate might need to rise by as much as half of a percentage point by the end of this year.