The SGX Nifty recorded a loss of 0.05% during Wednesday’s early trading session, with a value of 18,872 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex recovered all the intraday losses and ended Tuesday’s session broadly in green. The NSE Nifty 50 surged 61.25 points to 18,816.70 and BSE Sensex rose 0.25% to 63,327.70.
“After wobbling in the morning session, bulls regrouped at lower levels as the benchmark indices raced higher to end the session in green. Markets were in total control despite cautious mood at Dalal Street, with IT and metal stocks ending as star performers,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Wednesday, following negative cues from Wall Street. China’s Shanghai Composite tanked 0.22% in trade, while Japan’s Nikkei 225 gained 0.36%. Hong Kong’s Hang Seng index declined 1.39% while South Korea’s Kospi was down by 0.42%. The Taiwan Weighted index recorded losses of 0.18%.
Crude Oil
Oil prices weakened on Wednesday, extending falls to a third straight day, as the dollar strengthened on a US housing market recovery while fears persisted that monetary stimulus may not be enough to revive growth in China. Brent futures fell 21 cents, or 0.3 per cent, to $75.69 a barrel and US West Texas Intermediate (WTI) crude futures were down 14 cents, or 0.2 per cent, at $71.06 at 0043 GMT.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth net Rs 1,942.62 crore, while domestic institutional investors (DII) net bought shares worth net Rs 1,972.51 crore on June 20, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Hindustan Aeronautics (HAL), Hindustan Copper, Bharat Heavy Electricals (BHEL), L&T Finance Holdings, Indiabulls Housing Finance, Delta Corp and India Cements securities on its F&O ban list for 21 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 saw the bulls hold a support level of 43400. Currently, the index is trading within a broad range between 43400 and 44000. A breakout on either side of this range is likely to result in trending moves. As long as the support level of 43400 is held, a buy-on-dip approach is suggested. Once the index surpasses the level of 44000 it will witness sharp short covering on the upside towards 45000 levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Technical View
“Nifty negated the Dark Cloud Cover bearish formation formed on June 19 by ending in the positive. It has now formed a bullish piercing pattern. Nifty needs to break out of 18669-18888 band for showing acceleration in that direction,” said Deepak Jasani, Head of Retail Research, HDFC Securities.