The SGX Nifty gained 0.94% in trade on Monday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a positive basis. Nifty futures were 174 points higher on the Singaporean exchange at 18,722. Domestic indices soared in trade on Friday. NSE Nifty 50 touched a fresh high for the calendar year 2023, crossing the 18,500 mark. However, the index gave up that level to close at 18,499, up 0.97%. Sensex surged over 1% intraday, reclaiming and closing above the 62,500 mark.
“Despite weak cues from global markets, the domestic market defied the trend and experienced a widespread rally, driven by the strong growth forecast for the Indian economy. With the upcoming Q4 GDP data, it is anticipated that India’s FY23 GDP will marginally surpass the earlier projected 7.0% growth rate. Additionally, the expectation of a normal monsoon and consistent FII buying further boosted confidence among domestic investors,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the green on positive cues from Wall Street. China’s Shanghai Composite gained 0.4% in trade, while Japan’s Nikkei 225 soared 1.39%. Hong Kong’s Hang Seng index added 0.26% while South Korea’s Kospi advanced 0.16%. The Taiwan Weighted index gained 0.88%.
Crude Oil
Oil prices rose in early Asian trade on Monday after U.S. leaders reached a tentative debt ceiling deal, possibly averting a default in the world’s largest economy and oil consumer. Brent crude futures climbed 0.5%, to $77.34 a barrel while U.S. West Texas Intermediate crude was at $73.12 a barrel, up 0.6%.
FII/DII Data
Foreign institutional investors (FII) net bought shares worth net Rs 350.15 crore, while domestic institutional investors (DII) net purchased shares worth Rs 1,840.98 crore on May 26, 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 29 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
“The Bank Nifty index witnessed a strong comeback by the bulls, overpowering the bears. There was consistent buying activity throughout the day, indicating bullish sentiment in the market. If the index manages to sustain above the level of 44,000, it has the potential to experience further upside towards 45000. The momentum indicator RSI has also confirmed a positive crossover, reinforcing the buy signal,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.
Technical View
“We observe that the NSE Nifty 50 has taken out the previous swing high of 18,459, 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 support to watch for weakness is at 18,333,” said Subash Gangandharan, Senior Technical and Derivative Analyst, HDFC Securities.