Nov 15, 2022
Nifty to surpass 18,100 or correction on cards? 7 things to know before share market opens today
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 17,968 level. In the previous session, Sensex closed above 61,300 and the Nifty settled above 18,000. “Markets ended higher for the third straight day but ended off the day’s high as profit booking towards the close in banking stocks trimmed the gains. Investors preferred to stay on the sidelines after the US 2-year yield jumped to 4.632% while the 10-year yield was last pegged at 3.811%,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.
Key things to know before share market opens
Wall Street Overnight
Wall Street fell by the most in four weeks as further data proved that inflation is stickier than expected.The S&P 500 dropped 1.4% after a report said inflation at the wholesale level slowed by less last month than previously forecasted. The Dow Jones Industrial Average lost 431 points, or 1.3%, while the Nasdaq composite dropped 1.8%.
Technical Levels
“A small negative candle was formed on the daily chart, which indicates an emergence of minor weakness from the highs. This pattern also signals a formation of bearish counterattack type candle pattern (not a classical one). But this needs to be confirmed with sizable weakness in the subsequent sessions. The short-term uptrend status of Nifty remains intact and the market has started to face hurdles from near the highs of around 18,150-18,200 levels. Further decline from here could trigger minor weakness for the short term and a sustainable move above 18,150 levels could open more upside towards 18,250 levels,” said Najraj Shetti, Technical Research Analyst, HDFC Securities.
Levels To Watch
“Volume profile indicates Index has a strong support around 17,750-17,820 zone. Coming to the OI Data, on the call side, the highest OI observed at 18,100 followed by 18,200 strike prices while on the put side, the highest OI was at 17,800 strike price. On the other hand, Bank nifty has support at 40,800-40,900 while resistance is placed at 42,000-42,100 range. We advise traders to keep booking profits and trailing stop losses. Also option traders are advised to hedge their trades,” said Om Mehra, Equity Research Analyst, Choice Broking.
Crude Oil
Oil prices slid on Friday and were on track for weekly losses as strong U.S. economic data heightened concern that the Federal Reserve will continue tight monetary policy to tackle inflation, which could hit fuel demand even as crude stockpiles grow. Brent crude futures dropped 49 cents, or 0.6%, to $84.65 per barrel, while U.S. West Texas Intermediate (WTI) crude futures shed 46 cents, also a 0.6% loss, to $78.03. Both benchmarks were headed for a weekly decline of about 2%.
FII/DII Data
Foreign institutional investors (FII) bought shares worth Rs 1,570.62 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,577.27 crore on 16 February, according to the provisional data available on NSE.
F&O Ban
The National Stock Exchange has BHEL, Punjab National Bank (PNB), Ambuja Cements and Indiabulls Housing Finance stocks on its F&O ban list for 16 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.
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