Domestic benchmarks to see a flat opening

Local markets are likely to open on Friday with steady notes. Analysts said that Nifty saw good turnover of open positions through June.

Market experts believe that the June series is also likely to see positive movement. They said that the resolution of the debt ceiling in the United States will definitely arrive in time and that will help the market to maintain the rally on a global level. Besides, buying by foreign portfolio investors is likely to continue despite valuation concerns. According to them, the purchase will be in the spaces of medium and small businesses.

Among US indices, the Dow Jones Industrial Average rebounded sharply from its intraday low, closing at 0.11 percent. However, thanks to Nvdia’s strong rally, the Nasdaq jumped 1.71 percent and the S&P 500 closed up 0.88 percent.

Wall Street is taking a very short break from worrying about the debt ceiling/Fed tightening and focusing on Nvidia’s AI boom. The Nasdaq is improving as Nvidia’s forecasts boosted bets that artificial intelligence will be key to the big tech growth story, said Edward Moya, chief market analyst at The Americas OANDA. Most of the morning data supported further Fed tightening so traders shrugged off Fed’s Colin’s comment that a rate pause would give us room to assess the actions so far. The debt ceiling drama also eased as Speaker McCarthy stated that some progress had been made, although problems remained. Representative Kevin Hearn said a debt ceiling agreement is likely to be reached by noon tomorrow.

Uncertainty about the US debt ceiling and the rising dollar affected investor sentiment. “Once again, we saw a strong rebound from the lower levels which indicates general strength in the market. We continue to expect a gradual rally in benchmarks led by support-based buying.”

SGX Nifty at 18420 points to a flat open in June futures at 18420. Asian stocks are largely positive thanks to a strong rally in US stocks overnight.

“Nifty started underperforming before a dramatic recovery in the last hour of the day as Nifty stock rose above 18,300,” said Ashwin Ramani, Derivatives and Technical Analyst, Samco Securities.

India VIX

Volatility was evident on the final day of the May expiry streak as the India VIX posted an intraday low of 8.18 before recovering sharply to close at 12.52. Nifty closed above the 13-day exponential moving average (EMA) on the daily chart, which is a positive sign.

However, the momentum indicator, the Relative Strength Index (RSI) is yet to break its previous high, keeping the lower-high combination intact. On the derivatives front, FPIs were seen steadily increasing their short exposure, in contrast to the April expiry, Where was the opposite.

Buying and selling ratio

The Put-Call Ratio (PCR), known as a momentum indicator, fell to 0.97 from 1.22 during the May expiration, indicating strength in the call book. Traders are advised to remain cautious as we approach the June expiration series.