The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open on a negative note, as Nifty futures traded 58.5 points lower at 18,291.5 on the Singaporean exchange. Nifty and Sensex closed Thursday’s session flat. Nifty gave up the 18,300 mark, closing 0.09% lower at 18,297, while Sensex dropped 35 points to settle at 61,904.
“The current market rally has been largely influenced by consistent FII inflows, driven by lower treasury yields and the weakness of the US Dollar. However, the gains in the domestic market were tempered by weak earnings reported by a few heavyweight companies. On the global front, markets remained positive as US inflation eased below 5%, providing reassurance to investors that the Fed’s rate hike measures have been effective in managing inflation levels,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
The Dow Jones and the S&P 500 ended lower on Thursday. The Dow Jones fell 0.66%, the S&P 500 lost 0.17%, and the Nasdaq Composite added 0.18%.
Asian markets traded mixed as Hong Kong’s Hang Seng and China’s Shanghai were flat, down 0.05% and 0.09% respectively, while Taiwan’s TSEC 50 was 0.49% lower. Japan’s Nikkei 225 gained 0.75%.
Oil markets regained some ground in early Asian trade on Friday with traders engaged in short-covering ahead of the weekend, but uncertainties regarding the U.S. debt ceiling and renewed fears over a U.S. regional banking crisis capped gains. Brent crude futures rose by 36 cents, or 0.5%, to $75.34 a barrel by 0051 GMT. U.S. crude futures gained 41 cents, or 0.6%, to $71.28. They recovered from losses of about 3%-4% over the past two sessions.
Foreign institutional investors (FII) net bought shares worth net Rs 837.2 crore, while domestic institutional investors (DII) net sold shares worth net Rs 200.09 crore on May 11, according to the provisional data available on the NSE.
The National Stock Exchange has Canara Bank, Manappuram Finance, BHEL and Punjab National Bank securities on its F&O ban list for 12 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 had a range-bound trading session during the expiry period. A Doji candlestick pattern was formed, suggesting indecisiveness among traders. The 43,000 level served as a strong support area with the highest open interest build up on the put side. On the other hand, the 44,000 level acted as resistance with fresh call writing,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
“Though Nifty placed at the crucial overhead resistance of 18,300 levels, still there is no indication of any strength required for a decisive upside breakout. The formations of doji/spinning top or high wave candle patterns back to back at the hurdle signal possibility of reasonable downward correction ahead. However, a decisive move above 18,400 levels is likely to change the short term negative sentiment on the positive side. Immediate support is placed at 18,150 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.