Nifty to extend gains or fall under 18,200? Check US stocks, Asian markets, FII activity, SGX Nifty, more

The SGX Nifty gained 0.1% in trade on Monday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a flat basis. Nifty futures were 20 points lower on the Singaporean exchange at 18,218. Benchmark indices NSE Nifty 50 and BSE Sensex concluded Friday’s volatile session broadly in green. The NSE Nifty 50 jumped 0.41% to 18,203 and BSE Sensex surged 297.94 points to 61,729.68. 

“The domestic market, though experiencing a lack of decisive direction, closed the day on a positive note. The optimism in the US market was fuelled by progress in debt ceiling talks and stronger-than-expected jobless claims. However, the prospect of a stronger US economy suggests that the Federal Reserve may keep policy rates elevated for an extended duration,” said Vinod Nair, Head of Research, Geojit Financial Services.

Key things to know before share market opens

Wall Street

Wall Street ended Friday on a lower note as the gains were wiped after the negotiations around the debt ceiling were paused, denting optimizing that a deal would be finalized. The Dow Jones Industrial Average slipped 0.33%, the tech-heavy Nasdaq Composite declined 0.24% while the S&P 500 fell 0.14%.

Asian Markets

Shares in Asia-Pacific were largely trading in the green. Hong Kong’s Hang Seng gained 0.44% while China’s Shanghai Composite traded higher by 0.24%. Japan’s Nikkei 225 traded flat, up 0.05% as Taiwan’s TSEC 50 was 0.11% lower and South Korea’s Kospi was up 0.88%. 

Crude Oil

Oil prices edged up on Monday on a softer dollar and supply cuts from Canada and OPEC+ producers, while investors waited to see if a pledge by the G7 nations to strictly enforce price caps on Russian energy would impact exports. Brent crude futures climbed 14 cents, or 0.2%, to $75.72 a barrel by 0018 GMT while U.S. West Texas Intermediate crude for July delivery, the more actively traded contract, was at $71.84 a barrel, up 15 cents, or 0.2%.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth net Rs 113.46 crore, while domestic institutional investors (DII) net bought shares worth net Rs 1,071.35 crore on May 19, 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, Aditya Birla Fashion and Retail and L&T Finance Holdings securities on its F&O ban list for 19 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 came back strong and managed to hold the support of 43,500. This indicates that the bulls are still in control and that the index is likely to continue its uptrend. The immediate resistance is at 44,000. If the index is able to break above this level, it could see a sharp move toward the 44,500 level. The momentum is still intact on the upside,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Technical View

“The short term trend of NSE Nifty 50 remains choppy. The emergence of buying interest from the lows on Friday raises hopes for an upside bounce in the market. The confirmation of a bullish hammer pattern could pull Nifty towards the crucial resistance band of 18,400-18,500 levels again,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.