Indian benchmark indices are likely to open with gains on Tuesday amid strong global cues. SGX Nifty hinted at a positive start for domestic share market as Nifty futures traded 75 pts higher at 18,222 levels. In the previous session, BSE Sensex rallied 320 pts to 60,942, while NSE Nifty50 climbed 91 pts to 18,118. “Markets have been facing pressure on every uptick however rotational buying in select index majors is helping in establishing a higher base. Amid all, we reiterate our view to focus on the selection of stocks and prefer hedged positions until we see a decisive close above 18250 in Nifty,” said Ajit Mishra, VP – Technical Research, Religare Broking.
Key things to know before share market opens
Global market watch: Markets in the Asia-Pacific traded higher as Lunar New Year holidays were observed in most of the region. In Australia, the S&P/ASX 200 rose 0.17% in morning trade. Japan’s Nikkei 22 rose 1.29% and the Topix gained 1.08%. Markets in China, Hong Kong, Taiwan, South Korea, Malaysia and Singapore are closed for a holiday. Overnight in the US, Wall Street stocks closed sharply higher, fuelled by surging technology stocks. Dow Jones rose 0.76%, S&P 500 gained 1.19%, and Nasdaq added 2.01%.
Nifty technical view: “The Nifty moved in a range after a gap up start; at the end, a doji pattern was formed. The trend, however, remains positive for the short term, as the index has been sustaining above the 50 EMA as well as the 200 DMA. The RSI is in bullish crossover and rising. On the higher end, a directional move may be seen upon a close above 18200; support on the lower end is seen at 17950,” said Rupak De, Senior Technical Analyst at LKP Securities.
Key levels to watch: “Nifty has been forming a descending triangle pattern on the daily chart with multiple bottoms in the range of 17750-17180 range. Breakout level of the triangle is placed at 18180. For a sustained directional move, Nifty has to breakout on the either side of the range on closing basis,” said N Devarsh Vakil – Deputy Head Retail Research, HDFC Securities. Bank Nifty remains in buy-on-dip mode with immediate support at 42400 levels, which should act as a cushion for the bulls. The immediate upside hurdle is visible at 43000, where call writing is observed, and once cleared, we will see a sharp short covering on the upside, said Kunal Shah, Senior Technical Analyst at LKP Securities.
FII and DII data: Foreign institutional investors (FII) net sold shares worth Rs 219.87 crore, whereas domestic institutional investors (DII) net bought equities worth Rs 434.96 crore on Monday, January 23, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has PVR, Delta Corp, and L&T Finance Holdings stocks under its F&O ban list for 24 January. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because 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.
Q3 Results today: Maruti Suzuki India, HDFC Asset Management Company, Colgate-Palmolive, CG Power and Industrial Solutions, Chalet Hotels, Gateway Distriparks, Granules India, Indoco Remedies, Indus Towers, Latent View Analytics, Macrotech Developers, Motilal Oswal Financial Services, Nazara Technologies, Pidilite Industries, PNB Housing Finance, SBI Cards and Payment Services, Sona BLW Precision Forgings, Tata Coffee, TVS Motor Company, and United Spirits will report their quarterly earnings on Tuesday.
Oil inches higher: Crude oil prices rose slightly in early Asian trade on Tuesday in a market focused on prospects of demand recovery from top importer China and on the global economic outlook ahead of company earnings. Brent crude had risen 5 cents to $88.24 per barrel by 0116 GMT, while U.S. West Texas Intermediate (WTI) crude rose 13 cents to $81.75 per barrel. Crude oil prices in physical markets have started the year with a rally, as China has shown signs of more buying and as traders have worried that sanctions on Russia could tighten supply. However, crude prices are wavering as the dollar stabilizes and over exhaustion from China-reopening headlines, according to OANDA analyst Edward Moya.