Nifty to extend gains or fall below 18,500- Check US stocks, Asia shares, FII activity, SGX Nifty, more

Nifty to extend gains or fall below 18,500? Check US stocks, Asia shares, FII activity, SGX Nifty, more

The SGX Nifty gained 0.46% in trade on Monday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a positive basis. Nifty futures were 85 points higher on the Singaporean exchange at 18,714. Nifty 50 and Sensex concluded last Friday’s session in positive territory. Nifty 50 rose 0.25% to 18,534 and Sensex jumped 119 points to 62,547.

“The domestic market experienced significant volatility due to mixed signals from global counterparts. The approval of a debt deal that prevented a US default instilled optimism among global investors. Contrary to the global trend, domestic indicators favour bullish sentiment. The release of domestic GDP data, surpassing expectations, and robust Q4 earnings bolstered the growth prospects of the domestic market. As we enter a new month, investors are anticipating the release of data points such as PMI and US payroll data, in addition to the outcome of the central banks’ monetary policy meeting,” 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 jumped 1.75%. Hong Kong’s Hang Seng index gained 0.30% while South Korea’s Kospi added 0.36%. The Taiwan Weighted index edged up 0.28%.

Crude Oil

Crude oil prices jumped more than $1 a barrel on Monday after the world’s top exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth net Rs 659 crore, while domestic institutional investors (DII) net bought shares worth net Rs 582 crore on June 2, 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 5 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 witnessing a fight between the bears and the bulls, indicating a state of indecision in the market. Both sides are actively participating and trying to exert control over the index. If the index breaks below the support at 43,500, it may signal a bearish move with potential downside momentum. Conversely, if it breaks above the resistance at 44,200, it may indicate a bullish move with potential upside momentum,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.

Technical View

“NSE Nifty 50 as per weekly chart formed a small negative candle with minor upper and lower shadow. By considering previous consolidations in the recent past and the negations of such bearish patterns subsequently, one may expect an upside bounce in the market in the coming week. Immediate support is at 18,400-18,300 band and the next upside hurdle is around 18,650-18,850 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch

“The Nifty Index today saw build-up in both the 18,500 puts and the 18,600 calls for this week’s expiry signaling a range bound movement in the week to come. The same pattern can be seen on Bank Nifty as well,” said Rahul Ghose, Founder & CEO, Hedged.