The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open flat, as Nifty futures traded 21 points lower at 18,264 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex ended Thursday’s session higher, reversing Wednesday’s losses. Nifty 50 gained 165 points to reclaim the 18,250 mark while Sensex soared 555 points to end just shy of 61,750.
“Following a widely expected rate hike by the Fed and consistent foreign support, the domestic equities resumed their bullish momentum, driven by gains across major sectors. However, the US market faced losses as the Fed reiterated concerns over elevated inflation despite softening its language on future rate hikes. Signs of returning contagion fears in regional US banks also weighed on the global market mood,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Shares in Asia-Pacific traded flat on Friday. Japan’s Nikkei 225 remained closed. China’s Shanghai Composite slipped 0.03% while the Shenzhen Component fell 0.46%. Hong Kong’s Hang Seng gained 0.89%, while Taiwan’s TSEC 50 added 0.04%. South Korea’s Kospi declined 0.02%.
Crude Oil
Oil prices held steady in early trading on Friday, but were set for a third straight week of losses after markets witnessed dramatic drops on fears of a weakening U.S. economy and slowing Chinese demand. Brent crude rose 14 cents, or 0.2%, to $72.64 a barrel at 0002 GMT, while U.S. West Texas Intermediate was up 17 cents, or 0.3%, at $68.73 a barrel after four straight days of losses.
FII/DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,414.73 crore, while domestic institutional investors (DII) purchased shares worth net Rs 441.56 crore on May 4, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Manappuram Finance and GNFC securities on its F&O ban list for 5 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 continued its strong momentum on the upside and surpassed the immediate hurdle of 43,500. The index remains in a strong buying momentum and one should keep a buy-on dip approach with potential targets of 44,000/44,300 on the upside. The lower-end support is at the 43,400-43,300 zone which will act as a cushion for the bulls,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Technical View
“A long bull candle was formed on the daily chart after a small dip on Wednesday. This pattern indicates a strong upside momentum in the market without any reasonable downside correction. The market is in a sharp up trended movement and resistances are being taken out on the upside one after another. Nifty is now placed to witness a sharp upside breakout of the crucial resistance zone of around 18,200-18,300 levels. Hence a decisive move above this area could open the next upside targets of around 18,600-18,700 levels in the near term. Immediate support is placed at 18,150-18,100 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Currency Outlook
“The recovery in crude oil prices and weaker Asian currencies dragged the rupee lower in yesterday’s trade but still hover near three months high. The Federal Reserve’s dovish signal and concern over the US banking sector are discouraging the dollar bulls. In the near term, spot USDINR has support at 81.52, the 200-day simple moving average and resistance at 82.30,” said Dilip Parmar, Research Analyst, HDFC Securities.
Levels to Watch
“Volume profile indicates Index has a strong support around 17,950-18,050 zone. Coming to the OI Data, on the call side, the highest OI observed at 18,400 followed by 18,500 strike prices while on the put side, the highest OI is at 18,200 strike price. On the other hand, Bank Nifty has support at 43,100-43,300 while resistance is placed at the all-time high levels of 44,150-44,300 range,” said Om Mehra, Equity Research Analyst, Choice Broking.