Nifty to give up gains or cross 18200- Check F&O ban, crude oil, FII data, US shares, more before market opens

Nifty to give up gains or cross 18200? Check F&O ban, crude oil, FII data, US shares, more before market opens

The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the red, as Nifty futures traded 71 points lower at 18,149.5 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex ended Tuesday’s session in the green territory. The NSE Nifty 50 surged 82.65 points to 18,147 and Sensex skyrocketed to 61,354.7, up 0.4%.

“Defying the trend in global peers, Indian benchmark indices continued its upward momentum, fuelled by strong Q4 earnings and favourable domestic macroeconomic data. The manufacturing PMI surpassed expectations due to an increase in new business, moderation in price pressures, and improved supply chain conditions. Additionally, the GST collection in April was the highest recorded to date. While western markets traded with mild cuts ahead of the US Fed policy announcement, the domestic market benefited from strong inflows by FIIs” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region traded with deep cuts, following Wall Street’s cues. China’s Shanghai Composite and Shenzhen Component remained closed, along with Nikkei 225, however, Hong Kong’s Hang Seng index crashed 1.42% while Taiwan’s TSEC 50 was lower by 0.36%. South Korea’s Kospi also fell 0.68%.

Crude Oil

Oil pricesextended losses on Wednesday, after slumping about 5% to a five-week low in the previous session, as investors braced for more rate hikes this week that could dent energy demand. Brent futures fell 13 cents, or 0.2%, to $75.19 a barrel by 0015 GMT, while West Texas Intermediate crude (WTI) also fell 13 cents, or 0.2%, to $71.53.

FII/DII Data

Foreign institutional investors (FII) bought shares worth a net Rs 1,997.35 crore, while domestic institutional investors (DII) offloaded shares worth a net Rs 394.05 crore on May 3, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no securities on its F&O ban list for 3 May. 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 witnessed a stellar outperformance in the previous week and is now trading at a critical resistance zone of 43,500. The index needs to surpass this level on a closing basis to continue the momentum to a time-high level. The downside support is visible at the 43,000-42,800 zone and any dip towards this support zone will be an ideal opportunity to create fresh long positions,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.

Technical View

“After the formation of new higher bottom at the lows of 17553 on 21st April, the Nifty has been rising consistently towards the new higher top formation. Though, placed at the highs, still there is no confirmation of any higher top reversal forming yet at the highs. Immediate support is at 18080 levels and the next upside resistance to be watched at 18200 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Currency Outlook

“The rupee weakens throughout the day as traders and hedgers bet on the dollar ahead of the FOMC policy decision tomorrow. Spot USDINR is expected to hold support at 81.50, the 200-day simple moving average and resistance at 82.30. We are expecting a short covering rally in the near term before breaking the long-term support line,” said Dilip Parmar, Research Analyst, HDFC Securities.