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Bulls may pull Nifty towards 18000 once 17450 hurdle crossed; 5 things to know before market opening bell

Indian share market is expected to open in the red on Monday as early trends in SGX Nifty hinted at a negative opening for domestic equity benchmarks with a loss of 268 points.

Bulls may pull Nifty towards 18000 once 17450 hurdle crossed; 5 things to know before market opening bell
Nifty bulls to aim for 17500-17707 zone in the near term

Indian share market is expected to open in the red on Monday as early trends in SGX Nifty hinted at a negative opening for domestic equity benchmarks with a loss of 268 points. In the previous session, the Sensex declined 31 points to 58,191 while NSE Nifty 50 slipped 17 points to 17,315. According to analysts, while global investors will be keenly monitoring inflation figures in the US and China, Indian CPI print will be a key domestic factor to monitor. Further, IT companies will kick start the quarterly result season. Stock-specific swings will be evident. “We expect Nifty bulls to aim for 17500-17707 zone in the near term,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.

Also Read: Share Market LIVE: Nifty, Sensex stare at a negative start amid weak global cues; TCS Q2 results eyed

Things to know before share market opening bell

Global markets watch: Shares in the Asia-Pacific fell, with Hong Kong stocks leading losses as the Hang Seng index fell more than 2% in early trade. In mainland China, the Shanghai Composite lost 0.39%. The S&P/ASX 200 was 1.63% lower. Markets in Japan, South Korea, Taiwan and Malaysia are closed for holidays. In the US, major stock indexes dropped more than 2% on Friday after data showed the unemployment rate declined in September, sparking fear that the Fed would continue hiking rates aggressively. The Dow Jones Industrial Average closed down more than 600 points, sliding 2.11%, while the S&P 500 fell 2.8% and the Nasdaq Composite shed 3.8%.

Nifty technical view: A small positive candle was formed on the daily chart with upper and lower shadow. “Technically, this pattern indicates a formation of high wave type candlestick pattern. Having declined from the hurdle of 17425 levels on Thursday, Nifty forming such high wave pattern indicates minimal negative impact on the market post weakness from the hurdle. Hence, this is also signaling that the market could retest the abovesaid resistance in the short term and eventually the resistance could be broken on the upside,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

“Nifty on the weekly chart formed a long bull candle with upper and lower shadow. Hence, this pattern could be a confirmation of bullish hammer pattern that formed in the last week. The underlying uptrend of Nifty remains intact. The consolidation movement may be extended in early part of this week and the market could eventually witness sharp upside bounce from the lows by this week. A decisive upside breakout of the hurdle of 17450 is likely to pull Nifty towards another important resistance of 18000-18100 levels. Immediate support is placed at 17200 levels,” he added.

Levels to watch for: Immediate support and resistance in Nifty 50 are 17200 and 17500 respectively. Bank Nifty immediate support and resistance are at 39000 and 39800 respectively, according to Mohit Nigam, Head – PMS, Hem Securities.

Also Read: TCS, Star Health, Tata Motors, Bharti Airtel, Powergrid, IDBI Bank, HDFC, Suzlon Energy stocks in focus

IPO Watch: Tracxn Technologies Ltd (TTL) will be launching its IPO today. The offer will open for subscription till 12 October (Wednesday). The price band for the offer has been fixed at Rs 75 – 80 per equity share of face value Rs 1 each. The market intelligence data provider backed by the co-founders of Flipkart intends to garner around Rs 310 crore through an offer for sale of 38,672,208 equity shares by the shareholders and promoters. Of the total offer size, 75% of the net offer will be reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% is for retail investors.

Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for 10 October (Monday).

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First published on: 10-10-2022 at 08:18 IST