Will Nifty reclaim 18300 or fall in trade- Check US shares, Asian markets, FII activity, SGX Nifty, more

Will Nifty reclaim 18300 or fall in trade? Check US shares, Asian markets, FII activity, SGX Nifty, more

The SGX Nifty slipped 0.2% in trade on Tuesday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a flat-to-negative basis. Nifty futures were 38 points lower on the Singaporean exchange at 18,292. On Monday, the markets closed sharply lower. Nifty 50 ended down by over hundred points at 18,286 while Sensex gave up the 62,000 level to settle at 61,932.

“The domestic benchmark’s ascent towards record high was interrupted by selling pressure in heavyweight stocks, although small and mid-cap stocks outperformed. As anticipated, the Eurozone economy experienced a modest growth of 0.1% QoQ in the Jan-Mar period, following a stagnant previous quarter. In the US market, cautious trading prevailed as debt-ceiling negotiations took precedence,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Asian markets traded mixed on Wednesday, despite negative cues from U.S. Hong Kong’s Hang Seng index declined 0.27%, while China’s Shanghai Composite slipped by 0.10% while the Shenzhen Component added 0.16%. Japan’s Nikkei 225 gained 0.65% as South Korea’s Kospi was 0.59% higher. The Taiwan Weighted Index traded 1.1% up.

Crude Oil

Oil prices fell for a second day on Wednesday after a surprise rise in U.S. crude inventories stoked demand concerns on the heels of weaker-than-expected economic data from the United States and China, the world’s two biggest oil consumers. Brent crude futures were 29 cents lower, or down by 0.4%, to $74.60 a barrel. U.S. West Texas Intermediate crude edged down by 32 cents, also 0.4% down, to $70.55, as of 0005 GMT. 

FII/DII Data

Foreign institutional investors (FII) net bought shares worth net Rs 1,406.86 crore, while domestic institutional investors (DII) net sold shares worth net Rs 886.17 crore on May 16, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Delta Corp, Balrampur Chini Mills, Mannappuram Finance, GNFC and Punjab National Bank securities on its F&O ban list for 17 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 some profit booking at a higher level and the major contributors were HDFC twins. The index, if sustains below 44,000, can witness further correction towards 43,500 where the highest open interest is built up on the put side. The momentum indicator RSI is showing negative divergence which confirms the bearishness,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.

Technical View

“Having moved up swiftly from the higher lows of 17,553 of 21st April and the placement of key overhead resistance at the highs, the chances of sizable downward correction is likely in the short term. Immediate supports are placed around 18,100-18,050 levels. Any sharp up move above 18,400 levels is expected to bring bulls back into the action,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

Levels to watch

“OI Data indicates, on the call side the highest OI is witnessed at 18,500 followed by 18,400 strike price while on the put side, the highest OI remains at 18,200 followed by 18,100 strike price,” said Om Mehra, Equity Research Analyst, Choice Broking.