Nifty may get support at 18,100 followed by 18,063 and 18,003.
The market is likely to open marginally lower on Monday as the SGX Nifty indicates a negative start for the broader index, with a loss of 28 points after opening the session at 18,209. SGX futures touched a high of 18,209 in early trade on May 22.
The BSE Sensex gained 297 points to close at 61,729 in the previous session, while the Nifty 50 closed 73 points higher at 18,203. The Nifty50 traded comfortably higher than its 200-day moving average of 17,997 and is expected to build on the recent momentum.
Pivot charts indicate that the Nifty may get support at 18,100 followed by 18,063 and 18,003. If the index advances, 18,221 would be the key resistance level to watch out for followed by 18,258 and 18,318.
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The SGX Nifty indicates a negative start for the broader index with a loss of 28 points on Monday. SGX futures stood at 18,209.
Trade setup for Monday: Top 15 things to know before the opening bell
Stock futures retreated slightly on Sunday evening as traders monitored the negotiations over the US debt ceiling. Futures for the Dow Jones Industrial Average ticked down 48 points, or about 0.1 percent. S&P 500 futures dipped about 0.2 percent, and Nasdaq 100 futures also shed 0.1 percent. Stocks rose last week despite the uncertainty in Washington. The Nasdaq Composite climbed 3.04 percent, while the S&P 500 gained 1.65 percent. The Dow added 0.38 percent. President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are set to meet Monday to continue negotiations. Treasury Secretary Janet Yellen has said the U.S. could default on its debt as early as June 1.
European markets closed higher Friday as US debt ceiling talks boosted investor sentiment. The pan-European Stoxx 600 index closed up 0.77 percent, with all sectors in the green bar retail, which dipped 0.8 percent. Financial services led gains, with a 2.2 percent uptick, followed by construction stocks, which were up 1.56 percent.
German stocks extended the previous day’s gains, with the DAX index climbing 0.8 percent to close at 16,275.38, an all-time high. Tesco shares traded 0.5 percent lower after the supermarket chain said Chairman John Allan would step down at its shareholder meeting on June 16, following reported allegations of inappropriate behavior.
Asia-Pacific markets traded mixed on Monday after the Group of Seven summit in Hiroshima concluded and talks on the debt ceiling are slated to resume in the US In Japan, the Nikkei 225 slid 0.11 percent and the Topix traded close to the flatline following its outperformance last week. Investors will further digest Japan’s machinery orders for March on Monday.
In Australia, the S&P/ASX 200 was marginally lower, while South Korea’s Kospi was fractionally higher. In contrast, the Kosdaq saw a loss of 0.34 percent. Hong Kong’s Hang Seng index looks to slightly fall, with futures at 19,410 compared to its close of 19,450.57. China’s 1-year and 5-year loan prime rates for May are scheduled to be released later in the day.
Divi’s Labs Q4 net profit declines 64% to Rs 318.79 crore, lags estimate
Pharmaceutical major Divi’s Laboratories’ net profit for the quarter ended March 2023 slumped 63.89 percent on year to Rs 318.79 crore, bogged down by the high base of Covid-19 sales of Molnupiravir and elevated input costs. The standalone net profit for the fourth quarter plunged from Rs 882.96 crore seen in the corresponding quarter a year ago, and lagged the Street’s estimate of Rs 373.30 crore.
FPIs bring in Rs 30,945 crore in May on strong economic fundamentals
Foreign investors have put in Rs 30,945 crore in the Indian equities in May so far, driven by strong macroeconomic fundamentals, prospect of reducing interest rates, positive earnings outlook and falling valuations of stocks. With this, net inflows by Foreign Portfolio Investors (FPIs) reached Rs 16,365 crore in 2023 so far, data available with the depositories showed.
Oil prices reversed course to fall on Friday after U.S. House Republicans and President Joe Biden’s administration paused talks about raising the government’s debt ceiling, threatening a default that could cut energy demand. Brent futures settled 28 cents, or 0.8 percent, lower at $75.58 a barrel, while West Texas Intermediate U.S. crude for July expiry fell 25 cents, or 0.3 percent, to $71.69.
The Dollar index traded 0.39 percent lower in futures at 103.19, whereas the value of one dollar hovered near Rs 82.91
Gold rallied 1 percent on Friday, recouping some losses from earlier this week, on renewed worries about the stability of the banking sector, while traders slashed bets for another interest rate hike following remarks from the US Federal Reserve chairman. Spot gold gained 1.2 percent to $1,981.79 per ounce by 12:30pm ET (1830 GMT). U.S. gold futures settled 1.1% higher at $1,981.60.
FII and DII
Foreign institutional investors (FIIs) sold shares worth Rs 113.46 crore, whereas domestic institutional investors (DIIs) bought shares worth Rs 1,071.35 crore on May 19, provisional data from the National Stock Exchange showed.
With inputs from Reuters and other agencies.