Indian share market is likely to open higher as ahead of today’s trading session, SGX Nifty was in the green, hinting at a positive start for NSE Nifty 50 and BSE Sensex. With the US market being closed on Monday for the Labour Day holiday, equity traders would be looking for cues from Asian and other global markets for Tuesday’s session. “Markets have been showing tremendous resilience amid tough global conditions however it would be hard to hold if the situation deteriorates further. Banking and financial pack have played a critical role in capping the damage so far and their performance would remain the key ahead also as heavyweights like Reliance and IT majors are not showing any sign of respite,” said Ajit Mishra, VP – Research, Religare Broking.
5 things to know before market opening bell
Global market watch: Shares in the Asia-Pacific traded mixed at the open on Tuesday ahead of the Reserve Bank of Australia’s rate decision. Japan’s Nikkei 225 slipped 0.17 per cent and the Topix index lost 0.3 per cent. The Kospi in South Korea rose 0.14 per cent. In Australia, the S&P/ASX 200 was little changed. MSCI’s broadest index of Asia-Pacific shares outside of Japan inched 0.11 per cent higher. Meanwhile, US stock market remained closed on Monday on account of Labor Day holiday.
Nifty technical view: “A reasonable positive candle was formed on the daily chart, which is placed beside the negative candle of Friday. Technically, this pattern indicates a range bound action for the market with positive bias. Presently, Nifty is stuck within a high low range of 17800 on the upside and 17300 levels on the downside. A sustainable buying could only emerge on the move above 17800 levels and the slide below the immediate support of 17300 could pull Nifty down to the next support of 17000 levels for the near term. However, the long term charts like weekly and monthly are still positive and one may expect any downward correction to be a buy on dips opportunity,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out for: “Currently, the market is witnessing positive consolidation formation near the 20-day SMA (Simple Moving Average). The Nifty would see a key support level of 17550 and above the same it could move till 17750-17800. On the flip side, below 17550 a fresh round of selling could be seen and below the same, the index could slip till 17450-17400.” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. As for Bank Nifty, support is at 39300, while resistance is placed at 40500, according to Om Mehra, Technical Associate, Choice Broking.
FII and DII data: Foreign institutional investors (FIIs) offloaded net equities worth Rs 811.75 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 533.77 crore on Monsay (September 5), according to the provisional data available on the NSE website.
Stocks under F&O ban on NSE: Delta Corp remains in the NSE F&O ban list for today as well. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.