The SGX Nifty recorded a gain of 0.26% during Wednesday’s early trading session, with a value of 18,833 indicating a positive opening for the domestic indices NSE Nifty 50 and BSE Sensex. On Tuesday, continuing their upward momentum for the second day, the domestic indices NSE Nifty 50 and BSE Sensex recorded gains, ending the day in positive territory. Nifty 50 surged by 118 points, closing at 18,716, while Sensex experienced a 0.67% increase, settling at 63,143.
“The sustained flow of better-than-expected domestic macroeconomic data kept the market mood afloat, with the Nifty midcap trading to all-time highs. The domestic CPI data moderated closer to the RBI’s target due to tone-down in food inflation and a favourable base, which increased the likelihood of a rate cut by the end of the year. Attention now turns to the release of US inflation data and the upcoming FOMC announcement, where the view is optimistic on keeping rates on hold,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the green on Wednesday, following positive cues from Wall Street. China’s Shanghai Composite advanced 0.31% in trade, while Japan’s Nikkei 225 jumped 1%. Hong Kong’s Hang Seng index rose 0.3% while South Korea’s Kospi was flat, down by 0.06%. The Taiwan Weighted index clocked mild gains at 0.06%.
Crude Oil
Oil prices inched higher on Wednesday after industry data showed an unexpected rise in U.S. crude stocks, signalling weak demand to markets already worried about recession and disappointing Chinese economic data.
FII/DII Data
Foreign institutional investors (FII) net purchased shares worth net Rs 1,677.60 crore, while domestic institutional investors (DII) net offloaded shares worth net Rs 203.32 crore on June 13, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has IEX, India Cements, Delta Corp, Manappuram Finance, BHEL, and Indiabulls Housing Finance securities on its F&O ban list for 14 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 has been trading in a sideways consolidation phase, indicating a lack of clear directional bias. The immediate resistance level for the index is at 44,200, which has been acting as a hurdle for further upward movement. A successful breakout above this resistance level could potentially trigger trending moves in the index, suggesting a bullish sentiment.On the downside, the index has support at 43,700, which has held the market from significant declines. If the support at 43,700 remains intact, it could provide a buying opportunity for market participants,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Technical View
“On the daily charts we can observe that the Nifty has resumed its upmove and successfully defended the crucial support zone of 18,530 – 18,500. On the upside the current upmove can extend till 18,800 and beyond that 18,889. The momentum indicator on the daily and hourly time frame is providing divergent signals however price action is suggesting strength. In terms of levels, today’s gap area formed in the range 18,630 – 18,620 shall act as a crucial support zone while 18,778 – 18,800 shall act as an immediate hurdle zone,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
US CPI data
The core CPI rose 0.4% for a third straight month, in line with estimates. The overall CPI, however, increased a smaller 0.1%, aided by lower gasoline prices. Both the consumer price index and the core CPI — which excludes food and energy — decelerated on an annual basis, highlighting inflation’s descent since peaking last year. At 4%, year-over-year inflation is now at its lowest level since March 2021, according to data out Tuesday from the Bureau of Labor Statistics.