Nifty to continue gaining, may head to 18400-18500; 5 things to know before opening bell

Entering Wednesday’s session, SGX Nifty was up more than 100 points hinting at a positive start for Dalal Street.

Nifty
Charists see the Nifty 50 index heading towards all-time highs. (Image: REUTERS)

Domestic equity markets continued to march higher although the pace of the up-move has slowed down. S&P BSE Sensex ended Tuesday session 221 points or 0.37% higher at 60,616 while the broader NSE Nifty 50 settled at 18,055, gaining 0.29%. Entering Wednesday’s session, SGX Nifty was up more than 100 points hinting at a positive start for Dalal Street. Cues from global peers were positive after Dow Jones, S&P 500, and NASDAQ closed with gains and Asian markets mirrored the up-move. 

Global cues: On Tuesday, the tech-heavy NASDAQ zoomed 1.41%, followed by a 0.92% up-move in S&P 500. Dow Jones gained 0.51%. Among Asian markets Shanghai Composite, Hang Seng, TOPIX, Nikkei 225, KOSPI, and KOSDAQ were all in the green.

Technical take: On Tuesday the Nifty formed a long candle, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that this indicates a range-bound action in the market with positive bias. “The near-term trend of the Nifty remains intact and the positive chart pattern of higher highs and higher lows is active on the daily chart.”

Levels to watch out: Charists see the Nifty 50 index heading towards all-time highs. “We should look forward to higher targets for the Nifty – 18400-18500 is a possibility. Strong support lies at 17700 and as long as that holds, any corrective wave can be looked at strategically to accumulate long positions,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Call and Put OI: Maximum Call Open Interest was seen at 18000 strike with 20.5 lakh contracts, followed by 18500 strike with more than 14.5 lakh contracts. Call writing was seen at 18900 contracts. Put Open Interest is the most at 17500 strike with 28.7 lakh contracts, followed by 18000 strike with 17.6 lakh contracts. 

Results today: Today heavyweights will start announcing their results with IT majors Infosys, Tata Consultancy Services, and Wipro lining up. Apart from these, Indbank Merchant Banking Services, Ind Bank Housing, KD Leisures, Kome-On Communication, NB Footwear, Pradhin, Roselabs Finance, Tinna Rubber and Infrastructure, and Virinchi will also report their earnings. 

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