Nifty to top 18,700 or extend losses- See SGX Nifty, FII data, US shares, crude oil, more before market opens

Nifty to top 18,700 or extend losses? See SGX Nifty, FII data, US shares, crude oil, more before market opens

The SGX Nifty recorded a 0.02% loss during Monday’s early trading session, with a value of 18,710, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Friday, the benchmark indices had a volatile day of trade before closing in the red. Nifty 50 gave up the 18,700 level to end at 18,665.5, as Sensex tanked 260 points to settle at 62,979.4, just under the 63,000 level.

“The downward revision of earnings guidance by a major US tech company Accenture has raised concerns about potential earnings downgrades in the Indian IT sector, resulting in pressure on IT stocks. However, the domestic market is not expected to experience a significant correction due to favourable domestic economic indicators and correction in international commodities prices to sustain earnings growth on a QoQ basis,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the mixed on Monday. China’s Shanghai Composite tanked 1.21% in trade, while Japan’s Nikkei 225 added 0.05%. Hong Kong’s Hang Seng index traded flat while South Korea’s Kospi was higher by 0.41%. The Taiwan Weighted index recorded a loss of 0.53%.

Crude Oil

Oil prices rose in early Asian trade on Monday after a failed mutiny by Russian mercenaries over the weekend raised concerns about political instability in Russia and the potential impact on oil supply from one of the world’s largest producers.

FII/DII Data

Foreign institutional investors (FII) net offloaded shares worth net Rs 344.81 crore, while domestic institutional investors (DII) net sold shares worth net Rs 684.01 crore on June 26, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has RBL Bank, Hindustan Aeronautics, Hindustan Copper, L&T Finance Holdings, and Punjab National Bank securities on its F&O ban list for 26 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 witnessed an ongoing battle between the bulls and bears throughout the week. The index faces resistance at the 44,000 level, where the highest open interest is built up on the call side. On the other hand, support is observed at the 43,500PE level, where put writers are active. However, the overall sentiment remains bearish as long as the index stays below the 44,000 level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Technical View

“The short term trend of Nifty is about to reverse on the downside. Further decisive weakness from here could open intense selling pressure for the coming week. Next lower support is at 18,370-weekly 10 period EMA. Any upside bounce could encounter hurdles at 18,760 levels” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.