The SGX Nifty gained 0.23% in trade on Wednesday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a negative basis, snapping a four-day winning streak. Nifty futures were 42 points lower on the Singaporean exchange at 18,687.5. Benchmark indices NSE Nifty 50 and BSE Sensex ended Tuesday’s session in the green as Bank Nifty hit a new all-time high of 44,498.60. The Nifty 50 rose 0.19% to 18,634 and BSE Sensex advanced 123 points to 62,969.
“The domestic market continued its rally as recent Q4 results indicated improvement in demand. Further, expectations of a normal monsoon and a drop in international commodity prices support a rise in the margin profile. The underlying trend is strong, supported by strong liquidity, the negative slope of the interest yield, and the forecast of strong QoQ growth in Q4 FY23 GDP vs. 4.4% in Q3,” said Vinod Nair, Head of Research, Geojit Financial Services
Asian Markets
Shares in the Asia-Pacific region were trading in the red. China’s Shanghai Composite dropped 0.47% in trade, while Japan’s Nikkei 225 tanked 0.68%. Hong Kong’s Hang Seng index fell 1.63% while South Korea’s Kospi advanced 0.19%. The Taiwan Weighted index declined 0.3%.
Crude Oil
Oil prices edged up on Wednesday after steep losses in the prior session, as market participants awaited an expected vote on a bipartisan deal to lift the $31.4 trillion U.S. debt ceiling. Brent crude futures for August delivery rose 11 cents to $73.82 a barrel while U.S. West Texas Intermediate crude (WTI) gained 8 cents to $69.54 a barrel. Both fell more than 4% on Tuesday.
FII/DII Data
Foreign institutional investors (FII) net bought shares worth net Rs 2,086 crore, while domestic institutional investors (DII) net sold shares worth net Rs 439 crore on May 30, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no securities on its F&O ban list for 31 May. 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
“At the lower end, Bank Nifty has support at 44,000, which coincides with the highest open interest being built up on the put side. This suggests that market participants have shown significant interest in put options at this level, potentially acting as a support zone for the index. Overall, the Bank Nifty index has experienced bullish momentum, with the bulls leading the way and pushing the index to new highs,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.
Technical View
“On the daily chart, we observe that NSE Nifty 50 has taken out the previous swing high of 18,459 on last Friday, indicating the bulls remain in control. We expect the uptrend to continue in the coming sessions. Immediate upside targets for Nifty are now at 18,696. Short term corrections are not ruled out. Crucial supports to watch for weakness are at 18,575,” said Subash Gangandharan, Senior Technical and Derivative Analyst, HDFC Securities.