The SGX Nifty lost 0.37% in trade on Thursday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a negative basis, continuing to extend losses after snapping a four-day winning streak on Wednesday. Nifty futures were 69 points lower on the Singaporean exchange at 18,595. Benchmark indices NSE Nifty 50 and BSE Sensex ended Wednesday’s session in the red. Nifty 50 fell almost 100 points to 18,534 and Sensex plunged 346.89 points to 62,622.
“As indicated by multiple economic data points, the Indian economy is presently experiencing a robust recovery, leading to an upward trend in domestic equity markets. However, the rally is being hindered at times due to negative signals from global peers, as observed today. Concerns about a recession and potential interest rate hikes in western markets are impacting the domestic market but it is nevertheless maintaining the outperformance,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading primarily in the red. China’s Shanghai Composite dropped 0.41% in trade, while Japan’s Nikkei 225 was the sole gainer, up by 0.24%. Hong Kong’s Hang Seng index was flat, lower by 0.04% while South Korea’s Kospi declined 0.25%. The Taiwan Weighted index tanked 0.36%.
Crude Oil
Oil prices dipped in early trade on Thursday for the third straight session after data showed an unexpected, large build in U.S. crude stocks last week, triggering fears of an oversupply amid signs of weaker Chinese demand, too. Brent crude futures for August delivery fell 40 cents, or 0.6% to $72.20 a barrel by 0023 GMT, while U.S. West Texas Intermediate crude (WTI) eased 39 cents, or 0.6%, to $67.70 a barrel.
FII/DII Data
Foreign institutional investors (FII) net bought shares worth net Rs 3,406 crore, while domestic institutional investors (DII) net sold shares worth net Rs 2,529 crore on May 31, 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 1 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 experienced selling pressure from bears during the first half of the trading session. However, buying activity was witnessed in the last hour of trading, driven by MSCI index rebalancing. The index has support at 43,500, indicating a level where buyers have shown interest and the potential for a bounce-back. On the other hand, resistance is seen at 44,500, which is a significant level where both put and call writing is visible,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.
Technical View
“NSE Nifty 50 formed a hammer type of candle with a lower shadow after filling the gap on the daily chart. Until Nifty holds the 18,500 level on a closing basis it’s looking bullish. Intraday traders can look for long opportunities above 18,600 if the closing comes above 18,600 in the 15 minute chart. Traders can look for fresh shorts only if Nifty breaks the 18,500 level & remains below for 15 minutes to ensure a short,” said Rohan Shah, Head Technical Analyst, Stoxbox.
Q4FY23 GDP Data
During January- March quarter in the previous financial year, the nation’s GDP grew by 6.1% in comparison to 4.5% growth during the previous quarter of the financial year and 4% during the fourth quarter of FY22.