Indian benchmark indices are likely to open in green on Monday, hinted SGX Nifty. On the Singapore Exchange, Nifty futures traded 50 pts up at 17740, signalling a positive start for domestic share market. In the previous session, Sensex closed 1.45% down at 59,331, while the Nifty declined 1.6% to 17,604. “Markets are pointing toward more pain ahead and the upcoming events viz. Union Budget and US Fed meeting outcome would keep the volatility high. We are now eyeing the 17,250-17,400 zone in Nifty and any rebound towards the 17,750-18,050 zone would attract selling pressure. Investors can start nibbling selectively as some stocks across sectors are offering good bargains after the recent sell-off,” said Ajit Mishra, VP – Technical Research, Religare Broking.
8 Key things to know before share market opens
Global market watch: Stocks in the Asia-Pacific traded mixed on Monday as mainland Chinese markets jumped on resuming trade after a week-long New Year break. The Shenzhen Component rose more than 2%, leading gains in the wider region, while the Shanghai Composite rose 1.36% in its first hour of trade. Hong Kong’s Hang Seng index traded 0.6% lower. Japan’s Nikkei 225 rose 0.12% while South Korea’s Kospi fell 0.24%. Meanwhile, stocks on Wall Street ended the week last Friday higher. Dow Jones rose 0.08%, S&P 500 gained 0.25%, and Nasdaq advanced 0.95%.
Nifty technical view: Nifty on Friday closed 287 points lower. “A long bear candle was formed on the daily chart, which indicates a decisive downside breakout of the sideways range movement in the market at 17800 levels. Technically, any pullback rally from here could encounter strong overhead resistance of around 17750 levels, as per the concept of change in polarity and that could be a ‘sell-on-rise’ opportunity for the coming sessions. Weakness is likely to continue for the next 1-2 sessions and the important economic event of Union Budget 2023 on 1st Feb is expected to show fresh direction for the Nifty ahead,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch: “Volume profile suggests that Nifty index may find support around 17300-17400. In terms of OI data, the highest OI was observed on the call side at 17800, followed by 17900 strike prices, while the highest OI was observed on the put side at 17500 strike price. Bank Nifty, on the other hand, has support at 39800-40000 and resistance at 40900-41100. We expect the market to be quite volatile. We advise you to use a stock-specific method,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst, Choice Broking.
FII and DII data: Foreign institutional investors (FII) net sold shares worth Rs 5,977.86 crore on Friday, the highest outflow in a single day since 18 April 2022. Meanwhile, domestic institutional investors (DII) net bought shares worth Rs 4,252.33 crore on 27 January, according to the provisional NSE data.
Stocks under F&O ban on NSE: The National Stock Exchange has added Ambuja Cements stock to its F&O ban list for Monday, 30 January. According to the NSE, the stock mentioned above is prohibited in the F&O sector because it has 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.
Q3 Results today: Larsen & Toubro, Tech Mahindra, Bharat Petroleum Corporation, Bajaj Finserv, Bajaj Holdings & Investment, CSB Bank, Emkay Global Financial Services, Exide Industries, GAIL (India), Inox Leisure, Laurus Labs, Mazagon Dock Shipbuilders, Nippon Life India Asset Management, Punjab National Bank, REC, SRF, Trident, and Welspun India will report their quarterly earnings on 30 January.
Crude prices rise: Oil prices climbed in early Asia trade on Monday, supported by tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery that would support fuel demand. Brent crude futures rose 54 cents, or 0.6%, to $87.20 a barrel by 0115 GMT while U.S. West Texas Intermediate crude was at $80.22 a barrel, up 54 cents, or 0.7%.
FII outflow persistent: Foreign investors have pulled out a net of over Rs 17,000 crore so far this month due to the attractiveness of the Chinese markets and the cautious stance adopted by them ahead of the Union Budget and US Federal Reserve meeting. The outflow in January came after a net inflow of Rs 11,119 crore in December and Rs 36,239 crore in November. Foreign portfolio investors (FPIs) pulled out Rs 1.21 lakh crore from the Indian equity markets in 2022, following aggressive rate hikes by the central banks globally, particularly the US Fed, volatile crude, rising commodity prices and the Russia-Ukraine conflict.