The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open on a positive note, as Nifty futures traded 46.5 points higher at 18,405 on the Singaporean exchange. Nifty and Sensex closed Wednesday’s session in the green territory despite unfavorable global cues. The NSE Nifty 50 rose 0.27% to 18,315.1 and Sensex surged 178.87 points to 61,940.2.
“The domestic market relinquished its gains as weak global sentiments took hold. The upcoming US inflation figures have become the focal point in determining the global market trend. The US inflation rate, which is expected to remain unchanged at its March level of 5.0%, is causing worries that the Fed will remain stricter for long. However, the sustained support from FIIs is guarding the domestic market from a steep correction,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street
The Nasdaq ended Wednesday at its highest intraday level in more than eight months, boosted by a slightly lower-than-expected increase in April inflation. The Dow Jones Industrial Average fell 0.09%, the S&P 500 advanced 0.45%, while the Nasdaq Composite gained 1.04%.
U.S. CPI
The U.S. Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5% increase, raising hopes that the Federal Reserve’s interest rate hiking cycle is close to an end. Month-over-month CPI in April rose 0.4% after gaining 0.1% in March.
Asian Markets
Shares in Asia-Pacific traded mixed on Thursday. Japan’s Nikkei 225 fell 0.3% while China’s Shanghai Composite slipped 0.05% and the Shenzhen Component added 0.46%. Hong Kong’s Hang Seng gained 0.04%, while Taiwan’s TSEC 50 declined 0.41%. South Korea’s Kospi gained 0.4%.
Crude Oil
Oil prices rose in early Asian trade on Thursday after strong demand for fuels in the U.S. outweighed concerns about the possibility of the world’s biggest oil producer and consumer defaulting on its debt. Brent crude futures rose by 26 cents, or 0.34%, to $76.67 a barrel by 0015 GMT. U.S. crude futures rose 28 cents to $72.84.
FII/DII Data
Foreign institutional investors (FII) net bought shares worth net Rs 1,833.13 crore, while domestic institutional investors (DII) net sold shares worth net Rs 789.67 crore on May 10, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Canara Bank, Manappuram Finance, BHEL and GNFC securities on its F&O ban list for 11 May. 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 NSE Nifty Bank witnessed a strong recovery by the bulls after a weak start. The support level at 43,000 demonstrated a strong demand zone. Currently, there is immediate resistance at 43,500, and surpassing this level would clear the way for further gains toward 44,000. Market participants are keeping a close eye on the upcoming US CPI inflation data, and positive comments by the Federal Reserve Chairman have the potential to restore momentum in the market,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Technical View
“NSE Nifty 50 paced at the strong overhead resistance of 18,250-18,300 levels, still there is no indication of any reversal pattern unfolding at the highs. Any weakness from here could find support around the 18,200 band. A decisive move above 18,300-18,400 levels could open the next upside target of around 18,600-18,700 levels in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
