BSE Sensex and NSE Nifty 50 were eyeing a positive start on Thursday, a day of weekly F&O expiry, as suggested by trends on SGX Nifty. Nifty futures were ruling at 15,793, up 122.50 points or 0.78 per cent on Singaporean Exchange. In the previous session, bears continue to dominate domestic markets as BSE Sensex fell 152 points or 0.29% to settle at 52,541 points while the NSE Nifty 50 index closed just below 15,700. Analysts said that US Fed outcome and commentary will set the direction for the market in the near term. “There is lot of sectoral rotation happening with profit booking in energy stocks while beaten down sectors like Pharma and banking are witnessing some buying interest,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.
Key things to watch out on Thursday
US Fed delivers biggest rate hike since 1994: Federal Reserve officials raised their main interest rate by three-quarters of a percentage point — the biggest increase since 1994 — and signaled they will keep hiking aggressively this year, resorting to drastic measures to restrain the rampant inflation they failed to forecast, Bloomberg reported.
Nifty 50 technical view: The short term trend of Nifty continues to be weak with range bound action, said an analyst. “Such lack of strength at the important support signal chances of false downside breakout or one leg of downside before showing sharp upside bounce from the lows of around 15500 levels in the short term. Immediate resistance is placed at 15780,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
Nifty support, resistance: Maximum Call open interest was seen at 17,000 strike, followed by 16,500 strike, and 16,000 strike. Rajesh Palviya, VP – Research (Head Technical & Derivative), Axis Securities, told that Call concentration suggests the support levels, and PUT resistance. Maximum Put open interest was seen at 15,500 strike, followed by 15,000 strike, and 16,000 strike.
FII and DII data: On Wednesday, foreign institutional investors (FIIs) offloaded Rs 3,531.15 crore worth of shares, while domestic institutional investors (DIIs) remained buyers, to the tune of Rs 2,588 crore worth of shares, on a net basis in the Indian stock market.
Stocks under F&O ban: Three stocks – Indiabulls Housing Finance, RBL Bank, and Delta Corp – remained under the NSE F&O ban for Thursday, 16 June 2022. If the open interest of any stock crosses 95% of the MWPL (market-wide positions limits), all F&O contracts of that stock enter a ban period.
Global markets: Asian stock markets were seen trading higher on Thursday, tracking U.S. stocks after the Federal Reserve raised benchmark interest rates by 75 basis points. Japan’s Nikkei 225 rose nearly 2%, South Korea’s Kospi index also went up by 1.61%. In overnight trade on Wall Street, the Dow Jones Industrial Average jumped 303.70 points, or 1%, to close at 30,668.53. The S&P 500 rose 1.46% to 3,789.99 while, the Nasdaq Composite gained 2.5% to end the day at 11,099.15.