Nifty to climb above 18300 or bears to take over? 7 key things to know before share market opens | The Financial Express

Nifty to climb above 18300 or bears to take over? 7 key things to know before share market opens

Benchmark indices BSE Sensex and NSE Nifty 50 stare at a negative start amid weak global cues. Here are 7 key things you must know before share market opening bell

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Market Outlook: The overall structure shows that the Nifty index can continue with the short-term consolidation in the range of 17800-18400.

Indian benchmark indices are likely to open in red amid weak global cues. SGX Nifty hinted at a negative start for the domestic share market as Nifty futures were trading 66 pts lower at around 18,166 levels on the Singapore exchange. “We expect the prevailing consolidation to continue in the index citing mixed global cues and lack of any major trigger however the tone is likely to remain positive until the Nifty breaks 18000 levels. Participants should maintain their focus on identifying stocks from across sectors, barring pharma. At the same time, one shouldn’t get carried away with the recovery in the broader indices and stick with the fundamentally sound counters,” said Ajit Mishra, VP – Technical Research, Religare Broking.

Key things to know before share market opening bell

Global market watch: Markets in the Asia-Pacific traded lower as most of the region kicks off their first trading sessions for the year. In Australia, the S&P/ASX 200 fell 1.64% on its first trading session of 2023. Markets in Japan and New Zealand are closed for public holidays. South Korea’s Kospi fell 1.52%, and the Kosdaq shed 1.05%. Meanwhile in the US, major indexes closed the 2022 year with their worst losses since 2008, each snapping a three-year win streak. The S&P 500 lost 19.4% for the year, the Nasdaq lost 33.1% and the Dow closed 8.8%.

Nifty technical view: “A reasonable positive candle was formed on the daily chart, that has placed beside the long negative candle of Friday. This signal minor strength of bulls to comeback from the lows. A decisive move above 18265 levels could negate the bearish pattern of dark cloud cover, that formed on Friday. Nifty is continuously tagging the hurdle of down sloping trend line over the last 4-5 sessions. After the downside breakout of said TL on 23rd Dec, the Nifty failed to show any decisive follow-through weakness since then. This could raise some hops for bulls to make a comeback,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “The overall structure shows that the Nifty index can continue with the short-term consolidation in the range of 17800-18400. Within this range, the Nifty is attempting a move towards 18400. The level of 18000 is acting as an intermediate support, ” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas. Bank Nifty has support at 42800-42900 while resistance is placed at 43400-43500 range.

FII and DII data: Foreign institutional investors (FII) net offloaded shares worth Rs 212.57 crore, while domestic institutional investors (DII) net-bought shares worth Rs 743.35 crore on 2 January, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for 3 January. Securities banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

Manufacturing activity at 26-month high: India’s manufacturing activity rebounded to a 26-month high in December, led by strong expansion in new orders and production, according to the S&P Global India Manufacturing Purchasing Managers Index. As production increased, hiring also picked up, and factory output grew at its fastest rate since November 2021. Manufacturing PMI rose sharply to 57.8 in December from 55.7 in November. However, new overseas orders rose at the slowest pace in five months amid a demand slowdown in key export markets.

Crude oil slips: Oil prices slid on Monday from their highest levels in a month on a stronger dollar and after the head of the International Monetary Fund (IMF) warned of a tougher 2023 as major economies experience weakening activity. Brent crude futures dropped 98 cents, or 1.1%, to $84.93 a barrel by 0148 GMT while US West Texas Intermediate crude was at $79.49 a barrel, down 77 cents, or 1%, after the US dollar strengthened.

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First published on: 03-01-2023 at 08:32 IST