The SGX Nifty experienced a slight decline of 0.11% on Tuesday, trading at 18,704.5, indicating a slightly negative opening for the domestic indices NSE Nifty 50 and BSE Sensex. However, the previous day’s trading session concluded on a positive note, with Nifty 50 closing at 18,594, reflecting a gain of 0.32%, and Sensex reaching 62,787, up by 0.38% or 240 points.
“The equity market is maintaining stability due to a continuous stream of favourable domestic economic indicators. Stronger-than-expected domestic PMI figures, sequential growth in auto sales, and robust expansion in bank credit are instilling investor confidence in India’s growth prospects. On the other hand, the US jobs data presented a mixed picture, with non-farm payroll showing acceleration while the unemployment rate surged from 3.4% to 3.7% in May,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street
On Tuesday, the S&P 500 declined 0.2%, Nasdaq was flat, lower by 0.09%, while Dow Jones Industrial Average slipped 0.6%.
Asian Markets
Shares in the Asia-Pacific region were trading primarily in the green. China’s Shanghai Composite declined 0.22% in trade, while Japan’s Nikkei 225 added 0.23%. Hong Kong’s Hang Seng index gained 0.42% while South Korea’s Kospi rose by 0.54%. The Taiwan Weighted index was flat, at 0.03% in the red.
Crude Oil
Oil prices edged lower on Tuesday, giving up most of the prior session’s gains that followed an announcement by the world’s top exporter, Saudi Arabia, that it would further cut output.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth net Rs 701 crore, while domestic institutional investors (DII) net bought shares worth net Rs 1,195.98 crore on June 5, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Manappuram Finance, India Cements, Indiabulls Housing Finance securities on its F&O ban list for 6 June. 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 is witnessing lackluster movement ahead of the RBI (Reserve Bank of India) policy announcement, suggesting that market participants were cautious and waiting for guidance from the central bank. Based on the current scenario, the Bank Nifty index is expected to continue to trade within the range of 43,700-44,300,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.
Technical View
“Technically, on daily charts the Nifty has formed a small bearish candle which indicates indecisiveness between the bulls and bears. As long as the index is trading above 18,550 the positive sentiment is likely to continue. Above the same, the index could rally till 18,650-18,700. Below 18,550, the index could slip till 18,500-18,450,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Levels to watch
“Volume profile indicates Index has a strong support around the 18,450-18,500 zone. Coming to the OI Data, on the call side, the highest OI observed at 18,600 followed by 18,700 strike prices while on the put side, the highest OI is at 18,500 strike price,” said Deven Mehata, Equity Research Analyst, Choice Broking.