The GIFT Nifty recorded a 0.01% loss during Monday’s early trading session, with a value of 19,342.5 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Friday, benchmark Indian equity indices Nifty and Sensex hit all-time highs and settled at record closing highs. Nifty 50 surpassed over 19,200 but closed at 19,189.05 while Sensex ended trade at 64,718.56, higher by 800 points.
“The lack of global support had restrained the Indian indices from pursuing their record highs earlier, despite the presence of a resilient domestic macroeconomic background. With positive surprises assisting buoyancy in the global market and the advance of the southwest monsoon, the domestic market succeeded in marching to new highs with renewed strength. Global investor sentiments were uplifted by a favourable revision in Q1 GDP, a fall in jobless claims, and the positive outcome of the Fed’s US bank stress test,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the green on Monday. China’s Shanghai Composite gained 0.55% in trade, while Japan’s Nikkei 225 surged 1.58%. Hong Kong’s Hang Seng index gained 1.19% while South Korea’s Kospi was higher by 1.48%. The Taiwan Weighted index recorded a gain of 0.99%.
Crude Oil
Oil prices slipped in early Asian trade on Monday as global macroeconomic headwinds and possible further interest rate hikes from the U.S. Federal Reserves offset forecasts of tighter supplies amid OPEC+ cuts.
FII/DII Data
Foreign institutional investors (FII) net bought shares worth net Rs 6,397.13 crore, while domestic institutional investors (DII) net purchased shares worth net Rs 1,197.64 crore on June 30, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Indiabulls Housing Finance on its F&O ban list for 3 July. 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 experienced a breakthrough as it opened above its robust resistance level of 44,500. The index has been posting gains for three days in a row. The Relative Strength Index (RSI) indicates strong momentum and a bullish sentiment in the index. On the weekly chart, the index has given a downwards consolidation breakout, suggesting a rise in optimism. Therefore, the trend looks positive for the short term. Immediate support is visible at 44,500 where Put writers have added significantly in the open interest; while the 45,000 strike price has the highest open interest in calls, which suggests that Bank Nifty may encounter some resistance at that level,” said Rupak De, Senior Technical & Derivative analyst at LKP Securities.
Technical View
“The formation of long bull candles during an upside breakout signal resumption of sharp up trended movement in the market. The near term uptrend of Nifty remains intact and one may expect Nifty to reach up to 19,500 levels in the coming week. Immediate support is at 19,050 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
GIFT Nifty
SGX Nifty has been rebranded to GIFT Nifty, which began trading Monday onwards. Derivative contracts worth $7.5 billion, which were earlier traded on the Singaporean stock exchange, moved to NSE International Exchange (NSE IX) in Gandhinagar, Gujarat.