SGX Nifty hinted that the domestic equity indices could see a start in the green. On the Singapore Exchange, Nifty futures were trading higher, up 58 points, at the 17,071 level. On Monday, markets gained mildly as Nifty ended marginally higher, still not reclaiming the 17,000 level, while Sensex settled at 57,653, up over 125 points.
“After a range-bound movement, the market ended mixed with marginal gains in large caps while mid and small caps had losses. Some certainty was seen in domestic banks and large caps due to ease in the US & European market aided by reports on the acquisition of SVB by US lender First Citizens Bank. However, the investors continue to remain cautious as stress in the US and European financial systems makes their central banks actions complex,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
Wall Street equities gained on Monday as investor concerns about the financial system were calmed after First Citizens BancShares said it would take on the deposits and loans of failed Silicon Valley Bank, according to Reuters. The Dow Jones Industrial Average rose 0.6%, the S&P 500 gained 0.16% and the Nasdaq Composite dropped 0.47%.
Stocks in Asia-Pacific traded mixed as Japan’s Nikkei 225 gained 0.09% and Hong Kong’s Hang Seng index added 0.1%. South Korea’s Kospi advanced 0.5% in its first hour of trade. China’s Shanghai Composite traded up by 0.02% while the Shenzhen Component lost 0.5%.
Crude prices moved in a narrow range in early Asian trade on Tuesday after rallying in the previous session, with oil markets focused on developments in the banking crisis as well as on supply concerns and indications of strengthening demand. Brent crude futures fell 2 cents to $78.10 a barrel. West Texas Intermediate U.S. crude gained 8 cents, or 0.1%, to $72.89.
Foreign institutional investors (FII) net sold shares worth Rs 890.64 crore, while domestic institutional investors (DII) net acquired equities worth Rs 1,808.9 crore on 27 March, according to the provisional data available on the NSE.
The National Stock Exchange has no securities on its F&O ban list for 28 March. According to the NSE, stocks are prohibited in the F&O sector when 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.
“An identical open-close candle was formed on Monday with long upper and lower shadow as per daily time frame chart. The short term trend of Nifty continues to be weak with high volatility. The market is showing lack of strength to sustain the highs. There is a possibility of Nifty revisiting the recent swing lows of 16800 is in the short term. Any attempt of an upside bounce towards 17100-17150 levels could be a sell on rise opportunity,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty View
“The Bank Nifty bears continued to attack the index from higher levels and the index faced stiff resistance at the 39,800-40,000 zone. The index is stuck in a broad range between 39,000-40,000 and a brake on either side will have trending moves. The monthly expiry has the highest open interest build up at 40,000 CE and any trade above this will lead to sharp short covering,” said Kunal Shah, Senior Technical & Derivatives Analyst, LKP Securities.