Indian equity market on Wednesday stared at a tepid start as SGX Nifty hinted a negative opening for BSE Sensex and NSE Nifty 50 indices. Nifty futures on the Singapore Exchange were trading 141.5 points, or 0.85 per cent, lower at 16,566.50. “While markets have seen a pullback – volatility is expected to remain high over the next few days. Investors are uncertain over how the war would progress. Now, markets will keep an eye on the outcome of talks between Ukrainian officials and their Russian counter parts. While traders need to remain cautious of sharp volatility, Investors can use the current dip to gradually add quality blue chip companies in their portfolios,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

5 things to know before Wednesday’s market opening bell

Global markets: Markets in Asia-Pacific were mixed in Wednesday morning trade as the ongoing Russia-Ukraine conflict continued to keep investors on edge. Japan’s Nikkei dropped 1.22% while the Topix index shed 1.25%. Mainland Chinese stocks were also lower, with the Shanghai composite down 0.33%. Shenzhen component declined 0.937%. Hong Kong’s Hang Seng index shed 0.49%. Meanwhile, South Korea’s Kospi rose 0.15%. Overnight in the US, the Dow Jones Industrial Average dropped 597.65 points to 33,294.95 while the S&P 500 shed 1.55% to 4,306.26. The Nasdaq Composite declined 1.59% to 13,532.46.

Nifty technical view: “A long bull candle was formed on the daily chart, that has engulfed the reasonable positive candle of previous session. The formation of lower shadow indicate buy on dips opportunity in the market. This is positive indication. Nifty is currently placed at the edge of crucial overhead resistance of around 16800-17000 levels (previous swing lows and 200 day EMA). Previously, this area has offered crucial support for the market and resulted in a strong upside bounce. Having witnessed a decisive downside breakout of this area in the last week, the market is now placed at the hurdle as per the concept of change in polarity. Significance and past evidence of 16800-17000 levels signal tough task for the bulls to sustain above it in the short term. But, a sustainable upside above 17K mark is likely to change the short term bearish pattern of Nifty and that could open more upside in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Nifty support, resistance levels: Though the consolidation near the 16500 odd zones from the past few sessions could be deemed as a constructive setup till the global crisis looms over, it would be difficult for the market to sustain upwards. As far as levels are concerned, 17000 is the sturdy hurdle for the index, and decisive closure above the same could only re-strengthen the bulls of D-street. In contrast, 16400-16500 is the immediate support zone and any sustenance above the same could be seen as a positive sign for the market,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd.

CALL/PUT OI data: Maximum Call open interest was seen at 18,000 strike with of 20.75 lakh contracts, followed by 17,000 strike, which holds 20.46 lakh contracts, and 17,500 strike with 17.94 lakh contracts. Maximum Put open interest was seen at 16,500 strike with 48.60 lakh contracts, followed by 16,000 strike which holds 41.91 lakh contracts, and 17,000 strike with 24.10 lakh contracts.

Stocks under F&O ban on NSE: As it is the beginning of the March series, no stock is under the F&O ban for Wednesday (2 March). 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.