Will Nifty move towards 18,888 or slip- See SGX Nifty, FII data, US shares, crude, more before market opens

Will Nifty move towards 18,888 or slip? See SGX Nifty, FII data, US shares, crude, more before market opens

The SGX Nifty recorded a 0.27% gain during Wednesday’s early trading session, with a value of 18,862.5 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended Tuesday’s session broadly in green. The Nifty 50 surged 0.68% to 18,817.4 and the BSE Sensex skyrocketed 446.03 points to 63,416.03.

“The domestic market rallied, primarily supported by banking and finance stocks, which received a boost from the merger updates from HDFC. Meanwhile, global trends were mixed as the Chinese market showed signs of recovery, driven by hopes of additional policy stimulus, whereas European markets traded with declines in response to hawkish commentary from the President of the ECB. Ahead of the release of US stock data, oil prices eased as concerns regarding Russian political instability and potential supply disruptions were alleviated,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the mixed on Wednesday. China’s Shanghai Composite fell 0.52% in trade, while Japan’s Nikkei 225 gained 0.63%. Hong Kong’s Hang Seng index slipped 0.31% while South Korea’s Kospi was lower by 0.48%. The Taiwan Weighted index recorded a gain of 0.4%.

Crude Oil

Oil prices slumped over 2% on Tuesday on signals that central banks may not be done with interest rate hikes, while industry data showed lower U.S. crude and gasoline inventories during the peak summer driving season.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth net Rs 2,024.05 crore, while domestic institutional investors (DII) net sold shares worth net Rs 1,991.35 crore on June 27, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has L&T Housing Finance and Manappuram Finance on its F&O ban list for 28 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

“As far as Bank Nifty is concerned, the Index has decisively closed above the 20 day moving average (43,909) which is a bullish sign. The daily momentum indicator has triggered a fresh positive crossover which is a buy signal. Thus, both price and momentum indicators are suggesting a further upside in the Bank Nifty. On the upside we expect it to target levels of 44,500,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

Technical View

“The Nifty has taken support of the 20 day EMA at 18,650 levels and showed an upside bounce from the higher bottom. The said moving average has been offering support for the Nifty in the past and resulted in a sustainable upside bounce from the supports. Hence, one may expect further up move and Nifty to retest the crucial overhead resistance of 18,900 levels in the short term. Immediate support is at 18,650 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch

“The shift in expiry from Thursday to Wednesday may have triggered short covering in the Index today leading to rapid movement in it, post the announcement. Put writing for both tomorrow’s expiry and the July expiry saw significant OI build up. The 18,900 and 19,000 puts as well saw build up indicating that the all-time high level could be achieved this week itself,” said Rahul K Ghose, Founder & CEO, Hedged.