Dalal Street may look to RBI for direction today; 5 things to know before the opening bell

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June 04, 2021 7:56 AM

On Friday morning, SGX Nifty was down in the negative territory. Global cues were negative during the early hours of trade after Wall Street indices slipped to close in red. 

Stock market todayNifty reached a fresh all-time high on Thursday and ended near those levels. (Image: REUTERS)

Equity indices on Dalal Street continued to surge higher on Thursday. At closing, S&P BSE Sensex was at 52,232 while the Nifty 50 index ended the expiry session on 15,690. Broader markets participated in the rally with midcap and small-cap indices outperforming the benchmarks. India VIX dived 8% to trade near 15 levels. On Friday morning, SGX Nifty was down in the negative territory. Global cues were negative during the early hours of trade after Wall Street indices slipped to close in red. 

Global cues: On Wall Street, NASDAQ ended 1.03% lower on Thursday. S&P 500 closed down by 0.36% while the Dow Jones was 0.07% in the red on closing. The negative momentum was carried forward to Asian markets with Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ all trading in the red. 

Technical take: Nifty reached a fresh all-time high on Thursday and ended near those levels. “A small positive candle was formed on the daily chart with lower shadow. Nifty registered another new all-time high of 15705 and closed near the highs. Technically, this pattern signals uptrend continuation, after a small intraday dip of the previous session,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch out: Nifty now finds support at 15,600, according to Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments. “15500, 15400, and 15300 are the other levels of support, the most crucial being 15300. As long as the markets can hold on to that level, the overall trend remains bullish and traders can accumulate long positions around these support zones,” he added. On the other hand, the next hurdle for the index is placed at 15,800, said Rohit Singre, Senior Technical Analyst at LKP Securities.

FII and DII trades: Foreign Institutional Investors (FII) were again net buyers of domestic stocks on Thursday. FII pumped in Rs 1,079 crore. Meanwhile, Domestic Institutional Investors (DII) were net sellers, pulling out Rs 278 crore. 

RBI MPC: Reserve Bank of India’s Monetary Policy Committee (MPC) will end its three-day deliberations today. The MPC is expected to keep rates unchanged in the wake of the second wave of the covid-19 pandemic. The repo rate is at 4 per cent and the reverse repo rate at 3.35 per cent.

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