Nifty to top 18,500 or bears to grip D-St- Check US stocks, Asia shares, FII activity, SGX Nifty, more

Nifty to top 18,500 or bears to grip D-St? Check US stocks, Asia shares, FII activity, SGX Nifty, more

The SGX Nifty gained 0.36% in trade on Friday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a positive basis. Nifty futures were 66 points higher on the Singaporean exchange at 18,630. Earlier on Thursday, benchmark indices NSE Nifty 50 and BSE Sensex concluded the weekly F&O expiry session in red. Nifty 50 slipped 47 points, settling at 18,488, and BSE Sensex tumbled 0.31% to 62,429.

“Despite challenges in the global economies, the domestic market displayed better than estimated Q4 earnings growth, along with 7.2% GDP growth in FY23, adding buoyancy to the market during the week. However, today the market closed with a marginal negative bias in which banks witnessed heavy profit booking. Investors turned cautious in anticipation of inflationary pressure in the US after raising the US debt ceiling. The US 10-year bond yield inched higher; the market is looking ahead to the trajectory of US interest rates to get more visibility,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading primarily in the green. China’s Shanghai Composite advanced 0.61% in trade, while Japan’s Nikkei 225 was up by 0.77%. Hong Kong’s Hang Seng index jumped 2.76% while South Korea’s Kospi added 0.90%. The Taiwan Weighted index edged up 0.99%.

Crude Oil

Brent crude futures rose 13 cents, or 0.18% to $74.41 a barrel, while U.S. West Texas Intermediate crude (WTI) rose 15 cents to $70.25 a barrel, following two consecutive days of sliding crude prices.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth net Rs 71.07 crore, while domestic institutional investors (DII) net bought shares worth net Rs 488.93 crore on June 1, 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 2 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 remained under the control of bears as they maintained their grip on the market. Selling pressure was observed from the resistance zone around 44,200, suggesting that sellers were active at that level. If the index sustains below the level of 44,000, it could indicate further downside potential,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.

Technical View

“On the daily chart, we observe that while NSE Nifty 50 has corrected in the last two sessions, the pattern of higher tops and higher bottoms seen since the March 2023 lows has not been disturbed. This indicates that the intermediate uptrend remains intact. We expect the Nifty to find support around the previous swing high of 18,459 before again resuming the uptrend. Of course, if this support fails to hold, then a further correction is likely,” said Subash Gangandharan, Senior Technical and Derivative Analyst, HDFC Securities.

Levels to watch

“The June monthly expiry which had a high concentration of sold 18,500 PE, got converted to short straddles of the 18,500 strike by market participants. There was a good addition of the 18,500 call OI through the day. The 18,000 to 18,300 demand band is currently a strong level of support for the Index which should give a bounce to the Index,” said Rahul Ghose, Founder & CEO, Hedged.