Indian benchmark indices are expected to open in the green as trends in SGX Nifty hinted at a positive opening for Indian equities. Nifty futures were up 189 pts or 1% up on the Singapore Exchange. In the previous session, the BSE Sensex plunged 509 points to 56,598, while the NSE Nifty 50 fell 149 points to 16,859. “In the near term, market is expected to remain under pressure due to global uncertainty. However mixed trends across sectors would continue to offer stock-specific opportunities, especially in auto, consumption with the ongoing festive season,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
5 things to know before share market opening bell
Global watch: Shares in the Asia-Pacific rose on Thursday following a rebound on Wall Street overnight. The rally in the U.S. came after the Bank of England said it would intervene in the bond market to stabilize conditions. Japan’s Nikkei 225 advanced 1%, and the Topix index gained 0.31%. In South Korea, the Kospi added 1.5% and the Kosdaq was 2.5% higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.72%. Overnight in the US, the Dow Jones Industrial Average popped 1.88%, the S&P 500 gained 1.97%, staging a comeback after notching a new bear market low the previous session. The Nasdaq Composite was 2.05% higher.
Nifty technical view: “A small negative candle was formed on the daily chart with a long upper shadow. This market action signals the formation of a high wave or Doji-type candle pattern. Normally, such formation after a reasonable weakness calls for a pullback rally from the lows. But the overall market trend is still weak and there is no confirmation of any buying emerging from the lows. Having declined down to the 16800 support, there is a possibility of a minor pullback rally in the market from near 16800-16750 levels in the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “The support for Nifty has shifted around 16700 levels, while on the upside, 17100-17200 levels may act as an immediate hurdle. On the other hand, Bank Nifty has support at 37300 levels, while resistance at 38500 levels. Overall, the Nifty is trading near to its support zone one need to keep a close eye on global development as well. Pharma & IT stocks are looking good for buy.one can add on dips for long term returns,” said Palak Kothari, Senior Technical Analyst, Choice Broking.
IPO Watch: Swastik Pipe IPO opens for subscription on Thursday, and will close on 3 October at Rs 97-100 per share. Earlier this week on 26 September, the company fixed the price band of its initial public offering (IPO) at Rs 97-100 per share. The issue of 62.52 lakh shares will reserve 3,14,400 shares for the market maker. The company will raise Rs 62.52 crore through its public issue which will be used for working capital, general corporate purposes, and issue expenses.
Stocks under F&O ban on NSE: Vodafone Idea is the only stock under the National Stock Exchange’s F&O ban list for September 29. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market-wide position limit. All clients, members shall trade in the derivative contracts of Vodafone Idea only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action, according to NSE website.