The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open lower, as Nifty futures traded 40 points lower at 18,310 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex ended Monday’s session broadly in green. The Nifty 50 jumped 1.12% to 18,271.8 and Sensex surged 709.96points to 61,764.25.
“Indian equities gained confidence from strong domestic earnings and fading concerns over the US economic slowdown following robust job data. The recent weakness in the US dollar is drawing more foreign funds to the domestic market, with FIIs remaining net buyers for seven consecutive days. The US inflation report, due on Wednesday, is expected to remain around the March level of 5.0%,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Shares in Asia-Pacific traded in the red on Tuesday. Japan’s Nikkei 225 gained 0.72% while China’s Shanghai Composite slipped 0.06% and the Shenzhen Component fell 0.03%. Hong Kong’s Hang Seng gained 0.37%, while Taiwan’s TSEC 50 fell 0.32%. South Korea’s Kospi declined 0.41%.
Crude Oil
Oil pricesfell in early trade on Tuesday, paring strong gains from the previous two sessions as markets remain cautious ahead of U.S. inflation figures for April which will be key to theFederal Reserve‘s next interest rate decision. Brent crudeprice was down 31 cents, or 0.4%, at $76.70 and U.S. West Texas Intermediate (WTI) crude lost 23 cents, or 0.3%, to trade at $72.92 at 0005 GMT.
FII/DII Data
Foreign institutional investors (FII) bought shares worth net Rs 2,123.76 crore, while domestic institutional investors (DII) purchased shares worth net Rs 245.27 crore on May 9, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Manappuram Finance, BHEL and GNFC securities on its F&O ban list for 9 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 bulls after Friday’s sell-off once again witnessed buying momentum and the index surpassed the level of 43,000 which will now act as support on the downside. The immediate hurdle on the upside is placed at 43,500 and once taken out on a closing basis will witness a sharp short covering towards all-time high levels,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Technical View
“The short term trend of Nifty remains positive. A sustainable move above 18,300 levels is expected to pull Nifty towards the next upper area of 18,600-18,700 levels in the near term. Any failure to surpass above the hurdle is likely to result in further consolidation with minor weakness. Immediate support is at 18,100-18,050 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“Volume profile indicates Index has a strong support around 17950-18050 zone. Coming to the OI Data, on the call side, the highest OI observed at 18300 followed by 18500 strike prices while on the put side, the highest OI is at 18200 strike price. On the other hand, Bank nifty has support at 42500-42700 while resistance is placed at 43500-43700 range,” said Deven Mehata, Equity Research Analyst, Choice Broking.