Oct 11, 2023
Nifty to reclaim 17850 or further correction on cards? 7 things to know before share market opens
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 Monday, Wall Street was closed for trading, as America celebrated President’s Day, also known as Washington’s Birthday.
Crude Oil
Oil prices rose over 1% on Monday, buoyed by optimism over Chinese demand, continued production curbs by major producers and Russia’s plans to rein in supply. Brent crude settled up $1.07, or 1.3%, at $84.07 a barrel. U.S. West Texas Intermediate crude (WTI) for March, which expires on Tuesday, last rose 85 cents, or 1.1%, at $77.19.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 158.95 crore, while domestic institutional investors (DII) accumulated equities worth Rs 86.23 crore on 20 February, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no stocks on its F&O ban list for 21 February. According to the NSE, stocks are prohibited in the F&O sector once 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 long bear candle was formed on the daily chart with minor upper shadow, which indicates a violation of support around 17,900 levels. The positive chart pattern like higher tops and bottoms is still intact and current weakness could be in line with the new higher bottom formation. But, there is no confirmation of any higher bottom reversal pattern unfolding at the lows. The weakness with range movement could continue for the next 1-2 sessions before showing yet another upside bounce from the lows. The next lower support is at 17700 levels and immediate hurdle is around 18,000 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“Taking new long positions must be avoided until the Nifty attains 18,000 levels. In the weekly chart, Index remained beneath the middle Bollinger band. Index may find support around the 17,650-17,700 zone. On the derivatives front, the highest call OI is at 18,000 strike price while on the put side, highest OI remains at 17,500 strike price. On the other hand, Bank Nifty has support at 39,900 levels while resistance is placed at 41,200. As FIIs remained net buyers last week, if they flip their position; the market may under perform in coming days,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst, Choice Broking.
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