The SGX Nifty recorded a 0.05% loss during Friday’s early trading session, with a value of 18,822 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Thursday, the benchmark indices had a volatile day of trade before closing in the red. Sensex hit a new high on open but quickly pared its gains to trade in the trade, settling 0.45% lower at 63,238.89. Nifty 50 gave up the 18,800 level to end at 18,771.25.
“The domestic market is currently witnessing increased volatility as it hovers around its historical peaks. This heightened volatility has also affected mid- and small-cap stocks, which have shown resilience. Moreover, the weak global indicators have had an impact on the domestic market, as they experienced declines following concerns of potential rate hikes, prompted by comments from the Fed chair regarding the fight against inflation,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the red on Friday, despite positive cues from Wall Street. China’s Shanghai Composite tanked 1.31% in trade, while Japan’s Nikkei 225 slipped 1.23%. Hong Kong’s Hang Seng index crashed 1.38% while South Korea’s Kospi was lower by 0.7%. The Taiwan Weighted index recorded minor gains of 0.1%.
Crude Oil
Oil prices were little changed in early trading on Friday but were headed for a 3% drop for the week on worries about the outlook for fuel demand after a bigger-than-expected interest rate hike in the UK and warnings about looming U.S. rate hikes.
FII/DII Data
Foreign institutional investors (FII) net offloaded shares worth net Rs 693.28 crore, while domestic institutional investors (DII) net bought shares worth net Rs 219.42 crore on June 22, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has RBL Bank, Hindustan Copper, Bharat Heavy Electricals (BHEL), L&T Finance Holdings, and Punjab National Bank securities on its F&O ban list for 23 June. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 80% 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 bears in the Bank Nifty index have maintained their hold on the resistance level of 44000. The index will only resume its upward movement with a breakout above 44000 on a closing basis. The overall market sentiment remains negative, suggesting a sell-on-rise approach,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Technical View
“The immediate supports of daily 10 and 20 EMA are intact around 18,745 and 18,640 levels respectively. Unless these crucial supports are broken decisively on the downside, the deep cut in the market can’t be expected. On the upper side, the area of 18,900 is likely to be a strong hurdle for the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels To Watch
“The Nifty Index has seen significant build-up in the 18,800 short straddle positions for the June monthly expiry. Nifty has touched the 18,870 band of all time high four times now and reversed. We expect the Nifty to break through this resistance, next time when it comes close to it. Constant profit booking and fear of a double top is the reason for causing the Index from taking out its highs,” said Rahul Ghose, Founder & CEO, Hedged.