Nifty to cross 18,300 or bears to grip D-St? Check 9 things to know before share market opens

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.

Key things to know before share market opens

Wall Street

U.S. stocks paused on Monday after a strong rally in the prior session as investors shift focus to a key inflation reading later this week. For most of the day, stocks struggled for direction amid disappointing earnings from Tyson Foods and Catalent and a short-lived rebound in regional banks, according to Reuters. The Dow Jones Industrial Average fell 0.17%, the S&P 500 ended flat, up 0.05%, while the Nasdaq Composite gained 0.18%. 

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 prices fell 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 the Federal Reserve‘s next interest rate decision. Brent crude price 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.