On the day of weekly options expiry, BSE Sensex and Nifty 50 were staring at a gap-up opening, as indicated by trends on SGX Nifty in early trade. Domestic markets direction would depend on the monsoon, opening up of the economy in a graded manner and the pace of on-going vaccination. Besides, corporate earnings, stock-specific development, crude oil prices, rupee movement against US dollar and other global cues will be closely tracked by market participants. India reported less than 1 lakh new cases of Covid-19 infection for the third day in a row, at a time when the government announced free shots for all. Asian peers were seen trading in the positive territory on Thursday.
Global watch: Asian stock markets were trading higher in early trade with Japan's Nikkei 225 up half a per cent. The Topix index gained 0.21 per cent and South Korea's Kospi added 0.34 per cent. US stock indices ended lower in overnight trade on Wall Street. The Dow Jones Industrial Average fell 0.44 per cent, the S&P 500 lost 0.18 per cent, and the Nasdaq Composite dropped 0.09 per cent.
Q4 results today: A total of 64 companies including Steel Authority of India (SAIL), NHPC, Century Plyboards (India), Parle Industries, Cera Sanitaryware, Mazagon Dock Shipbuilders, eClerx Services, Responsive Industries, Tide Water Oil Company, National Fertilizers and Mayur Uniquoters, are scheduled to release their quarterly earnings.
FIIs remain net sellers: On Wednesday, foreign institutional investors (FIIs) offloaded shares worth Rs 846.37 crore, while domestic institutional investors (DIIs) sold shares worth Rs 271.7 crore on a net basis in the Indian equity market.
Watch out for these levels for Indian rupee: The USD-INR spot is hovering around 73 zone, whether it will bounce or not depends on US CPI. “The fx traders await some guidance from CPI data and ECB policy. An upbeat CPI data won't provide an excuse for the Fed to defer the tapering debate a little longer but all will be revealed at the June 16th FOMC meeting. Until then in USDINR spot, 73.25-73.30 is a crucial resistance, a consistent above that can push prices towards 73.60-73.75 zone while 72.75-72.50 will act as a crucial support,” Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services, said.
Technical outlook: Wednesday's decline seems to have dampen the effort of bulls to sustain the highs, said an analyst. “The formation of long bear candle at the new highs open chances of reversal pattern. But, follow through weakness in the subsequent session is expected to confirm the reversal and that could open more weakness for the short term. Crucial supports to be watched at 15560 and a decisive move below this area is expected to drag the market to lower 15400 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.