Feb 21, 2023
Nifty to climb above 18000 or bears to grip Dalal Street again? 7 things to know before share market opening bell
Indian benchmark indices are likely to open on a negative note, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were in the red at 17,963 level. In the previous session, Sensex closed marginally above 61,000, down 0.52% and the Nifty gave up 17,950. “Lack of major triggers in the domestic market is attracting global cues to dictate the market trend. The US market is facing an unfavorable combination of higher-than-expected inflation and a stronger job market. This suggests that interest rates have not yet peaked and will remain elevated for a long period,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
On Friday, Wall Street closed mixed as investor sentiments were weighed by sticky inflation and fears of continued rate hikes. The Dow Jones Industrial Average gained 129 points or 0.4%. However, the Nasdaq composite fell 0.6% and the S&P dropped 0.3% after paring a bigger loss from the morning.
Crude Oil
Oil prices were little changed in early Asian trade on Monday, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery. Brent crude slid 9 cents, or 0.1%, to $82.91 a barrel. U.S. West Texas Intermediate crude for March, which expires on Tuesday, was at $76.40 a barrel, up 6 cents. The more active April contract fell 9 cents to $76.46.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 624.61 crore, while domestic institutional investors (DII) sold equities worth Rs 85.29 crore on 17 February, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Ambuja Cements and Indiabulls Housing Finance stocks on its F&O ban list for 20 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.
Technical View
“A small negative candle was formed on the daily chart with long upper and lower shadow. Technically, this pattern indicates minor reversal in the market from the highs. The minor degree positive chart pattern like higher tops and bottoms continued on the daily chart and present weakness could be in line with a new higher bottom formation. but, there is no confirmation of any higher bottom reversal yet at the lows.
“The short term trend of Nifty is choppy with weak bias. The present weakness has not damaged the near term uptrend status of the market so far and we expect chances of buying emerging from near the lower support of around 17,800 levels in the coming week. On the higher side, the area of 18,150 could act as a resistance,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“According to the volume profile, the index may find support around 17,750-17,800. In terms of OI data, the call side had the highest OI at 18,000, followed by 18,100 strike prices, and the put side had the highest OI at 17,800 strike price. Bank Nifty, on the other hand, has resistance at 41,700-41,800 and support at 40,700-40,900,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst, Choice Broking.
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