The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the red, as Nifty futures traded 38 points lower at 18,235 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex ended Friday’s session in the green territory. The NSE Nifty 50 surged 150 points to 18,065 and Sensex skyrocketed 463.06 points to 61,112.44.
“Despite concerns about potentially weaker US GDP numbers and high inflation, the stronger-than-expected earnings reported by Meta propelled IT stocks to the forefront of the Wall Street rally. The trend was reflected in the domestic market, as beaten-down IT stocks helped to lift broader market sentiment. However, with US inflation remaining high, the prospect of another rate hike by the Fed is looming, keeping global markets volatile in the coming days,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
China’s Shanghai Composite and Shenzhen Component, along with Japan’s Nikkei 225 and Hong Kong’s Hang Seng indices, were closed on Tuesday as a result of Labour Day holidays across the globe.
Crude Oil
Oil prices fell in thin early Asian trade on Tuesday as the market digests weak economic data from China and expectations of another U.S. interest rate hike. Brent crude fell by 2 cents to $79.29 a barrel by 0021 GMT, while U.S. West Texas Intermediate (WTI) crude fell 2 cents to $75.64. Both benchmarks fell by more than $1 last session.
FII/DII Data
Foreign institutional investors (FII) bought shares worth a net Rs 3,304.32 crore, while domestic institutional investors (DII) purchased shares worth a net Rs 264.27 crore on April 28.
Foreign institutional investors (FII) bought shares worth a net Rs 3,304.32 crore, while domestic institutional investors (DII) purchased shares worth a net Rs 264.27 crore on April 28, 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 2 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 continues to remain in strength despite the subdued move from the most heavyweight. The index has remained above the consolidation breakout point on the daily chart. Besides, the index has remained above the critical moving average. The trend will likely remain positive as long as it remains above 43,000 on a closing basis. On the higher end, Bank Nifty might move towards 43,300/43,500 over the near term,” said Rupak De, Senior Technical Analyst at LKP Securities.
Technical View
“After showing a gradual up move in the early part of the week, the Nifty seems to have gathered sharp upside momentum in the last two sessions. The short term uptrend of Nifty remains intact and the market is expected to reach up to the next resistance of 18,200-18,300 levels in the next week. Immediate support is placed at 17,900 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Currency Outlook
“Dollar inflows, improved economic progress, and a weaker dollar led to the Indian rupee posting its second monthly gain. In April, the rupee gained nearly 0.4%, after touching a three-month high of 81.61 earlier this week. Foreign institutions have purchased approximately $650 million in stocks and $27 million in debt instruments. In the near future, the bias for the local unit remains bullish and it may head towards 81.50, which is the 200-day moving average line,” said Dilip Parmar, Research Analyst, HDFC Securities.