On the back of solid indications from global markets, it is anticipated that domestic stock markets will get the week off to a positive start. On Friday, US equities ended the day with gains, while early trading in Asia showed that every region’s stock market was in the green. Later this week, there will be a policy review conducted by the RBI, and all eyes will be on it. Before the opening bell rings, this is what you need to be aware of:
Nifty Outlook
Over the previous two days, Nifty has been either consolidating its position or trading in a limited range. According to Rupak De, Senior Technical Analyst at LKP Securities, the Relative Strength Index (RSI) has shown a bearish crossing, which indicates that prices may be heading in a downward direction.
It is anticipated that the general attitude in the market will continue to go sideways, which indicates that there will be no obvious direction in the short future. The levels between 18,450 and 18,500 on the Nifty are anticipated to provide support for the index. According to what he claimed, “resistance is seen at the 18,650 and 1,8800 levels.”
SGX Nifty signals a positive start
Nifty futures traded higher on the Singapore Exchange, moving up 86 points, or 0.46 percent, to a level of 18,715, indicating that the local market is likely to get off to a good start on Monday.
Asian stocks extend gains
On Monday, Asian markets continued a worldwide rally as investors speculated that the Federal Reserve would suspend its rate hikes this month in response to a mixed employment report in the United States. Meanwhile, oil prices rose as Saudi Arabia committed to making significant production cutbacks in July, which contributed to the rise in oil prices. The most comprehensive index that MSCI maintains of Asia-Pacific stocks other than Japan showed a gain of 0.06 percent. The Nikkei index in Japan increased 1.68 percent, while the Shanghai Composite Index in China gained 0.11 percent, the Hang Seng Index in Hong Kong gained 0.42 percent, and the Kospi Index in South Korea rose 0.43 percent.
Brent prices are up 2%
On Monday, the price of a barrel of oil increased by more than one dollar as a response to Saudi Arabia’s announcement that it will reduce production by an additional one million barrels per day beginning in July. This was done to combat the macroeconomic headwinds that have been depressing market prices. Brent oil futures were at $77.64 a barrel, up $1.51 or 2 percent. After reaching an intraday high of $75.06 a barrel, the price of US West Texas Intermediate oil increased $1.41, which is equivalent to a 2% increase, to $73.15 a barrel.
Dollar index stays elevated
The financial markets continue to indicate that the Federal Reserve will hold steady interest rates at its next policy meeting; nevertheless, they seem to have priced out nearly any possibility of a rate decrease occurring before the end of this year. Because of this, the value of the dollar increased by 0.5 percent on Friday and continued to be strong versus its counterparts early on Monday, when it was trading at 104.16. The United States dollar rose 0.8% against the Japanese yen, reaching 139.94, while the euro fell 0.5% against the dollar, reaching $1.0706. Despite the strength of the U.S. dollar, the Australian dollar managed to post gains of 0.5 percent, taking it to $0.6605.
Wall Street stocks settle higher
Friday’s closing prices for US equities were higher after a report on the labour market suggested that pay growth in May was slower than expected, which indicated that the Federal Reserve may forgo a rate rise in two weeks, and investors cheered a compromise that was reached in Washington that averted a catastrophic debt default. The Dow Jones Industrial Average increased by 701.19 points, or 2.12%, to 33,762.76, the S&P 500 increased by 61.35 points, or 1.45%, to 4,282.37, and the Nasdaq Composite increased by 139.78 points, or 1.07%, to 13,240.77.
Stocks in the F&O ban
The National Stock Exchange (NSE) has not placed any stocks on the trading halt list for the Monday, June 5 trading session. When a security’s overall position exceeds 95 percent of the market-wide position limit (MWPL), derivative transactions on that security are prohibited. In regard to the aforementioned security’s derivative contracts, it is not possible to open any fresh positions. When the open interest in the stock falls to less than 80 percent of the MWPL across all exchanges, this limitation will be abolished.
FPIs sell shares worth Rs 659 crore
On Thursday, foreign portfolio investors acted as net sellers of domestic equities to the tune of Rs 658.88 crore, according to provisional data made available by the NSE. On the other hand, domestic institutional investors (DIIs) made a net purchase of Indian shares worth 581.85 crore rupees.
Rupee rises 1 paise against dollar
On Friday, the Indian currency finished practically unchanged against the United States dollar, adding 1 paisa to close at 82.39 versus the dollar. This was accompanied by an optimistic mood in the local equity markets. At the interbank foreign exchange market, the local unit started on a positive note versus the US dollar at 82.31 and recorded an intraday high of 82.27. This was the highest point the local unit reached throughout the trading day.
