The benchmark equity indices are expected to remain consolidated with an upside bias on the back of positive domestic inflation and the US Federal Reserve's rate-cut stance.
The NSE Nifty 50 is finding it tough to surpass the 23,500 mark and has consolidated in the 23,000–23,500 range in the last three sessions, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. "Thus, as long as the index remains below 23,500, profit booking is possible."
The Nifty will hold within the 23,000–23,100 zone in case of a dip, while the 23,600–23,800 zone may act as an immediate resistance, Yedve said.
The consumer inflation in May fell to 4.75% against 4.83% in April. This compares to a Bloomberg estimate of 4.85%.
The decline in core inflation to 3.1% is good news for the monetary policy committee and this paves the way for rate cut by the RBI earlier than expected if the Fed also turns dovish, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. "From the stock-market perspective, this is good news, which can further strengthen the bullish trend being witnessed in the market now."
The markets are expected to react to the outcome of the US Fed meeting in early trades on Thursday, which could set the tone for the day, according to Ajit Mishra, senior vice president of research at Religare Broking Ltd.
Overnight, the Federal Reserve officials pencilled in just one interest-rate cut this year and forecasted more cuts for 2025.
On a daily scale, the Bank Nifty forms a tri-star doji candlestick pattern, Yedve said. "According to this pattern, if the index sustains below 49,530, profit booking may be feasible."
The GIFT Nifty was 19.5 points or 0.08% higher at 23,464.50 as of 06:46 a.m.
F&O Action
Nifty June futures increased by 0.22% to 23,355.1, trading at a premium of 32.15 points. Open interest for Nifty June futures rose by 0.78%.
Nifty Bank June futures were up by 0.22% to 49,914, which was at a premium of 19 points. The open interest for Nifty Bank June futures fell by 5.32%.
For Nifty Options expiring on June 13, the highest call open interest is at 24,000, while the highest put open interest stood at 23,000.
For Bank Nifty Options expiring on June 19, the highest call open interest stands at 50,000, and the highest put open interest was at 49,800.
FII/DII Activity
Overseas investors in Indian equities turned net buyers after a day.
Foreign portfolio investors bought shares worth Rs 427 crore, while domestic institutional investors stayed net buyers for the third day and mopped up equities worth Rs 234 crore.
Markets Recap
Benchmark equity indices came out of their two-day decline and closed higher on Wednesday, led by shares of heavyweights. Nifty closed at its highest-ever level.
The NSE Nifty 50 closed 58.10 points up, or 0.25%, at 23,322.95, while the S&P BSE Sensex ended 149.98 points, or 0.2%, higher at 76,606.57. Intraday, the Nifty reached its lifetime high of 23,441.95.
Most sectoral indices ended higher on the NSE, with Nifty Media gaining the most. Nifty FMCG was the top loser.
Major Stocks In News
Tata Power: The company strengthens its nationwide e-bus charging network with high-capacity, fast charging points.
Firstsource Solution: Prasant Nadella has resigned as the president and chief operating officer and senior management personnel of the company.
LT Finance: Shareholders of the company are to offer 8.82 crore shares at Rs 169.7 apiece, as per Bloomberg data.
Nestle India: The board approved the continuation of royalty payments at the current rate of 4.5% to the parent company.
Amber Enterprises: The company acquired an additional 4.6% stake in IL JIN Electronics for Rs 33 crore.
Bondada Engineering: The company received a work order worth Rs 939 crore from NLC India for setting up a 600 MW grid-connected solar power project, including operation and maintenance for three years.
Exide Industries: The company invested Rs 75 crore by subscribing to the rights issue of subsidiary Exide Energy Solutions. The total investment stands at Rs 2,452.2 crore.
Global Cues
Markets in Asia-Pacific rose on Thursday after the US Federal Reserve kept its interest rates unchanged for the seventh time, while the inflation data came softer than anticipated.
The Nikkei 225 was 47.60 points or 0.12% higher at 38,924.31, and the S&P ASX 200 was 37.70 points or 0.49% higher at 7,753.20 as of 06:42 a.m.
The US Consumer Price Index fell to 3.3% on year in May, against 3.4% analysts projected in a Bloomberg survey. Core CPI, which keeps aside volatile food and energy prices, eased to 3.4% compared to 3.5% analysts forecasted.
The US stocks reached new all-time peaks as a widespread easing of inflation led to a sharp drop in bond yields, prompting traders to wager that the Federal Reserve may cut rates for two times despite dot plots indicating one.
The S&P 500 Index and Nasdaq 100 rose 0.85% and 1.53%, respectively, as of Wednesday. The Dow Jones Industrial Average decline 0.09%.
Key Levels
US Dollar Index at 104.71
US 10-year bond yield at 4.31%
Brent crude down 0.19% at $82.44 per barrel
Nymex crude down 0.24% at $78.31 per barrel
Bitcoin was up 0.04% at $68,114.19
Money Market Update
The currency appreciated 2 paise against US currency to settle at Rs 83.55, compared to Rs 83.57 a dollar on Tuesday.
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