The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open on a positive note, as Nifty futures traded 36 points higher at 18,347 on the Singaporean exchange. Nifty and Sensex pared early gains and ended Tuesday’s session flat. Nifty 50 closed at 18,265.95 and the 30-share Sensex settled at 61,761.33.
“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
As investors grew more cautious ahead of a U.S. consumer price index report and a meeting between U.S. political leaders to discuss the debt ceiling, Wall Street ended lower. The Dow Jones Industrial Average fell 0.17%, the S&P 500 declined 0.46%, while the Nasdaq Composite tanked 0.63%.
Asian Markets
Shares in Asia-Pacific traded in the red on Wednesday. Japan’s Nikkei 225 fell 0.44% while China’s Shanghai Composite slipped 0.86% and the Shenzhen Component fell 0.33%. Hong Kong’s Hang Seng slipped 0.57%, while Taiwan’s TSEC 50 crashed 0.70%. South Korea’s Kospi declined 0.06%.
Crude Oil
Oil prices slipped in early trade on Wednesday after industry data showed a surprise build in U.S. crude stocks, while investors awaited U.S. inflation data for April that could give direction for the Federal Reserve‘s next rate decision. Brent crude dropped 16 cents to $77.28 a barrel at 0008 GMT, while U.S. West Texas Intermediate (WTI) crude dipped 20 cents to $73.51, paring gains from the previous session.
FII/DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,942.19 crore, while domestic institutional investors (DII) purchased shares worth net Rs 404.7 crore on May 9, 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 10 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 Bank Nifty index witnessed profit booking after a steep rally in the preceding days, indicating that some traders were taking profits off the table. Support is at 42,800, which is expected to act as a cushion for the bulls. This means that if the index falls to this level, buyers are expected to enter the market and push the price back up. Resistance is at 43,500, which is a level that the index needs to surpass in order to reach an all-time high. If the price manages to break through this level, it could indicate a shift toward a bullish trend for the index,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Technical View
“The short term uptrend of NSE Nifty 50 remains positive. But, the signs of tiredness have started to be visible at the important resistance of 18,300 levels. Some more consolidation or minor downward correction is not ruled out in the short term before showing another round of upside bounce from the higher lows. Immediate support is at 18,100 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“On the call side, the highest OI observed at 18,500 followed by 18,600 strike price while on the put side, the highest OI was at 18,100 followed by 18,000 strike price. On the other hand, NSE Nifty Bank has support at 42,500-42,300 zone while resistance is placed at 43,800. The long term investor may opt for selective mid-cap and small-cap stocks in addition to large cap, which currently look appealing,” said Om Mehra, Equity Research Analyst, Choice Broking.
