Nov 14, 2022
Nifty to cross 18000 resistance or bears to make a comeback? 7 things to know before share market opens
Indian benchmark indices are likely to open on a muted note, hinted SGX Nifty on Wednesday. On the Singapore Exchange, Nifty futures are trading lower at 17907 level. In the previous session, BSE Sensex soared 600 pts to 61,032, while NSE Nifty 50 jumped 159 pts to 17,930. “We are still yet to thrash key psychological levels of 18000; but the way the market closed today; it is certainly showing early signs of coming out of this long congestion phase. Hopefully, the global peers will provide the much-needed impetus to confirm the breakout in the coming session itself,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.
Key things to know before share market opens
Global market watch: Asia Pacific markets traded lower on Wednesday after the release of US inflation data that came in hotter-than-expected. Hong Kong’s Hang Seng index fell 1.23%. In mainland China, the Shanghai Composite shed 0.14%. Japan’s Nikkei 225 and South Korea’s Kospi fell 0.8%. Overnight in the US, Wall Street stocks ended mixed on Tuesday. The S&P 500 declined 0.03%, Nasdaq gained 0.57%, while Dow Jones Industrial Average declined 0.46%.
Key levels to watch: Nifty has support at 17,836 followed by 17,799 and then 17,740. If the index moves up, the key resistance levels to watch out for are 17,954, followed by 17,990 and 18,049. Nifty Bank on Tuesday rallied 366 pts to 41,648. “The index has surpassed the immediate hurdle of 41,500 which had the highest open interest build-up on the Call side. The index’s next hurdle is at 42,000 and once surpassed will witness sharp short covering towards 43,000-43,500 levels,” Kunal Shah, Senior Technical Analyst at LKP Securities said.
FII and DII data: Foreign institutional investors (FII) bought shares worth Rs 1,305.30 crore, while domestic institutional investors (DII) purchased shares worth Rs 204.79 crore on 14 February, according to the provisional data available with NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has BHEL, Punjab National Bank (PNB), Ambuja Cements and Indiabulls Housing Finance stocks on its F&O ban list for 15 February. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Crude oil prices fall: Oil prices slipped in early Asian trade on Wednesday after falling by more than $1 a barrel in the previous session as industry data pointed to a much bigger-than-expected surge in U.S. crude inventories. Brent crude futures lost 20 cents to $85.38 per barrel by 0111 GMT, while U.S. West Texas Intermediate (WTI) crude futures shed 19 cents to $78.87.
US inflation rises in January: The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose by 6.4% from January 2022, slightly higher than the estimated rate of 6.3%. Inflation in the US continued to surge in January, with the latest data showing higher-than-expected increases both year-on-year and month-on-month. On a month-on-month basis, the CPI increased by 0.5%, surpassing the projected rate of 0.4%. The Core Inflation Rate also rose by 0.4%, exceeding the expected 0.3% increase.
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