Nifty to reclaim 18300 or sink further? Check US stocks, Asian markets, FII activity, SGX Nifty, more

SGX Nifty hinted at a start in the red for Indian benchmark indices BSE Sensex and NSE Nifty 50. Here’s a look at the key things to know before the share market opens.

Share market
Overnight, Dow Jones fell 0.77% , Nasdaq declined 0.61% while the S&P 500 fell 0.73%.

The SGX Nifty lost 0.26% in trade on Thursday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a negative basis. Nifty futures were 46 points lower on the Singaporean exchange at 18,237. Benchmark indices Nifty 50 and BSE Sensex ended Wednesday’s session in the red. Nifty tumbled 0.34% to 18,285.4 and BSE Sensex slipped 208 points to 61,773. 

“The domestic market experienced a short-lived rally that was overshadowed by subdued global market sentiment. US Treasury yields rose due to concerns over stalled US debt ceiling talks and hawkish comments from US Fed officials, which reduced the chances of a rate pause. European markets also declined, triggered by higher-than-expected UK inflation figures that bet on more rate hikes by the BoE,” said Vinod Nair, Head of Research, Geojit Financial Services.

Key things to know before share market opens

Wall Street

Wall Street closed lower on Wednesday as U.S. debt ceiling negotiations dragged on without a deal. The Dow Jones Industrial Average slipped 0.77%, the tech-heavy Nasdaq Composite declined 0.61% while the S&P 500 fell 0.73%.

Asian Markets

Shares in Asia-Pacific were trading mixed on Thursday. Hong Kong’s Hang Seng tanked 1.53% while China’s Shanghai Composite traded lower by 0.17%. Japan’s Nikkei 225 added 0.48% as Taiwan’s TSEC 50 was 0.63% higher and South Korea’s Kospi was down 0.31%. 

Crude Oil

Oil prices fell in early Asian trading on Thursday after uncertainty that the United States will avoid a debt default weighed against the prospect of further OPEC+ production cuts. Brent crude futures slipped 5 cents, or 0.1%, to $78.31 a barrel by 0042 GMT. U.S. West Texas Intermediate crude (WTI) fell 16 cents, or 0.2%, to $74.18.


Foreign institutional investors (FII) net bought shares worth net Rs 1,185.84 crore, while domestic institutional investors (DII) net purchased shares worth net Rs 300.93 crore on May 24, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Delta Corp and Indiabulls Housing Finance securities on its F&O ban list for 25 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 

Bank Nifty closed with selling pressure, breaking below the previous consolidation level. The Relative Strength Index (RSI) is in a bearish crossover, indicating a negative sentiment. The support level is placed at 43,500; a fall below 43,500 may trigger further correction in the Bank Nifty. Resistance levels are situated at 43,700 and 44,000,” said Rupak De, Senior Technical at LKP Securities.

Technical View

“The short term trend of NSE Nifty 50 remains up despite selling pressure seen in the last two sessions. Further upsides are likely once the immediate resistance of 18,420 is taken out. Immediate target is at 18,459. Crucial support to watch for weakness is at 18,250,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

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First published on: 25-05-2023 at 07:59 IST