Trends on SGX Nifty indicate a cautious opening for the index in India with a 38 points loss

The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a negative opening for the index in India with a 38 points loss.

The BSE Sensex shot up 975.62 points, or 1.97 percent, to 50,540.48 on May 21 while the Nifty50 climbed 269.30 points, or 1.81 percent, to 15,175.30.

According to pivot charts, the key support levels for the Nifty are placed at 15,044.07, followed by 14,912.83. If the index moves up, the key resistance levels to watch out for are 15,248.27 and 15,321.23.

US Markets

US stocks ended mostly lower on Friday, weighed down by technology and consumer discretionary shares, while the dollar edged higher after stronger-than-expected US manufacturing data.

The Dow Jones Industrial Average rose 123.69 points, or 0.36%, to 34,207.84, the S&P 500 lost 3.26 points, or 0.08%, to 4,155.86 and the Nasdaq Composite dropped 64.75 points, or 0.48%, to 13,470.99.

Asian Markets

Asian shares got off to a cautious start on Monday as investors anxiously awaited a key read on U.S. inflation this week for guidance on monetary policy, while Bitcoin took a hammering after China cracked down on mining and trading of the cryptocurrency.

MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed in slow trade. Japan's Nikkei added 0.1% and South Korea was flat.

Bitcoin falls 8.9% to $34,156

Bitcoin fell by 8.9 percent to $34,156 at 1000 GMT on Sunday, losing $3,344.54 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is down 47.4 percent from this year's peak of $64,895.22 on April 14. Ether, the coin linked to the ethereum blockchain network, dropped 11.5 percent to $2,031.96 on Sunday, down $264.35 from its previous close.

RBI surplus transfer to Centre likely to impact economy, markets, banks: Experts

Banking stocks that led the rally on May 21 would be in focus in the coming week as well after the Reserve Bank of India (RBI) said that it would transfer a surplus of Rs 99,122 crore to the government for the nine-month accounting period ended March 31.

The amount transferred is higher than market expectations, and any additional liquidity will cushion the fiscal deficit burden for the government. The global rating agency, Moody's in a report highlighted that it has estimated the general government debt burden to reach 90 percent of GDP in fiscal FY22, and 90.8 percent in FY23.

COVID-19 impact: FPIs net sellers at Rs 4,444 crore in May so far

Overseas investors withdrew Rs 4,444 crore from Indian markets in May so far amid concerns over the second wave of the coronavirus pandemic and its possible impact on the Indian economy. As per depositories data, foreign portfolio investors (FPIs) took out Rs 6,370 crore from equities but pumped in Rs 1,926 crore in the debt segment between May 1-21.

Oil jumps on weather concerns in Gulf of Mexico

Oil prices jumped 2% after three days of losses, driven higher as a storm formed in the Gulf of Mexico, but were on track for a weekly fall as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress a nuclear deal.

Brent crude futures settled up $1.33, or 2%, to $66.44 a barrel, while U.S. West Texas Intermediate was at $63.54 a barrel, up $1.64, or 2.65%.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 510.16 crore, while domestic institutional investors (DIIs) net acquired shares worth Rs 649.10 crore in the Indian equity market on May 21, as per provisional data available on the NSE.