Nifty to gain or sink below 18700- See SGX Nifty, FII data, US shares, more things to know before market opens

Nifty to gain or sink below 18700? See SGX Nifty, FII data, US shares, more things to know before market opens

The SGX Nifty recorded a gain of 0.17% during Friday’s early trading session, with a value of 18,753, indicating a mildly positive opening for the domestic indices NSE Nifty 50 and BSE Sensex. The equity indices snapped a four-day winning streak to settle in the red, with Nifty sliding 0.49% to 18,753 while Sensex was down almost 300 points to 62,848.

“Indian equities witnessed profit booking on the day of the RBI policy meeting outcome, which was on expected lines. Nifty opened higher and remained strong for the first hour of trade. However, post the RBI policy outcome; markets saw some profit booking in the interest rate-sensitive sectors, which dragged the indices down,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green, following the positive cues from Wall Street. China’s Shanghai Composite gained 0.06% in trade, while Japan’s Nikkei 225 was soaring 1.69%. Hong Kong’s Hang Seng index added 0.11% while South Korea’s Kospi advanced by 0.83%. The Taiwan Weighted index surged 0.77%.

Crude Oil

Oil prices fell in early Asia trade on Friday as demand concerns outweighed the prospect of tighter supply from global producers while investors remained skeptical that the United States and Iran could strike a nuclear deal.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth net Rs 212.40 crore, while domestic institutional investors (DII) net sold shares worth net Rs 405.01 crore on June 8, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Manappuram Finance and Indiabulls Housing Finance securities on its F&O ban list for 9 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

“Following the RBI policy, the Bank Nifty index experienced persistent selling pressure around the 44,500 level. In terms of support levels, the index has a support level positioned at 43,700. A breach below this support level might indicate a further downside potential and could attract additional selling interest from traders and investors. The index is stuck in a range and a break on either side will have directional movement,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Technical View

“As long as the NSE Nifty 50 is trading below 18,725, the technical correction is likely to continue. Below which, the market could slip till 18,600-18,550. Contra traders can take a long bet near 18550 with a strict stop loss at 18,520,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.