The SGX Nifty recorded a gain of 0.28% during Monday’s early trading session, with a value of 18,662, indicating a positive opening for the domestic indices NSE Nifty 50 and BSE Sensex. On Friday, domestic indices closed in the red, after opening in the positive territory on Friday. The market gave up its gains in early trade and ended near the day’s low. The NSE Nifty 50 tanked 66 points to 18,568 and BSE Sensex slipped 0.33% to 62,641.
“Investors in the domestic market were cautious as they awaited the release of domestic inflation data on Monday. The Reserve Bank of India’s conservative inflation forecast contributed to the selling pressure. Market participants hope that the Consumer Price Index (CPI) inflation for May will decrease from its current level of 4.7%. Global cues also failed to provide support, with the US reporting high unemployment claims,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.
Asian Markets
Shares in the Asia-Pacific region were trading largely in the red, with a few outliers. China’s Shanghai Composite and Shenzhen Component declined 0.26% and 0.04% in trade respectively, while Japan’s Nikkei 225 jumped 0.75%. Hong Kong’s Hang Seng index fell 0.25% while South Korea’s Kospi sank 0.29%. The Taiwan Weighted index edged up 0.33%.
Crude Oil
Oil prices edged lower on Monday ahead of a Federal Reserve meeting as investors try to gauge the central bank’s appetite for further rate hikes, while concerns about China’s fuel demand growth and rising Russian crude supply weighed on the market.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth net Rs 308.97 crore, while domestic institutional investors (DII) net purchased shares worth net Rs 1,245.51 crore on June 9, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has IEX, India Cements and Indiabulls Housing Finance securities on its F&O ban list for 12 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 currently experiencing selling pressure as the bears maintain their control at higher levels. The resistance zone between 44,300 and 44,500 has proven to be strong, preventing the index from making significant upward moves. On the downside, there is a support level at 43,700, which has the potential to act as a buying opportunity. If the index manages to hold above this support level, it could attract buyers who see it as a favorable entry point,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
Technical View
“Nifty fell for the second consecutive session on 9 June. It gained 0.16% over the week after giving up the gains early in the week. It formed a bearish pattern on weekly charts. A close below 18,508 could result in acceleration in the downtrend. On up moves, 18,726 could act as a resistance,” said Deepak Jasani, Head of Retail Research, HDFC Securities.