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Nifty to fall below 18450 or bulls to bounce back? 7 things to know before share market opens

The Indian share market is likely to remain consolidative given the bigger event of US Fed monetary policy due next week.

Nifty to fall below 18450 or bulls to bounce back? 7 things to know before share market opens
Nifty to bounce back from the support 18450 levels

Indian benchmark indices are likely to open on a tepid note amid weak global cues. SGX Nifty hinted at a flat to negative start for domestic equities as Nifty futures traded lower at 18665 level on the Singapore Exchange. In the previous session, the BSE Sensex fell 216 points to 62,411, while the NSE Nifty 50 slipped 82 points to 18,560. “Market is likely to remain consolidative given the bigger event of US Fed monetary policy due next week. Post the strong services PMI data and the jobs data, investors are worried that the Fed might continue with its aggression for some more time,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Key things to know before market opening bell

Global market watch: Shares in the Asia-Pacific region were mixed Thursday morning with recession fears weighing on continued negative sentiment. Hong Kong’s Hang Seng index was 1.2% higher, while Japan’s Nikkei 225 fell 0.67%. South Korea’s Kospi lost 0.86%. In Australia, the S&P/ASX 200 fell 0.68%. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.16%. Overnight in the US, as major Wall Street indices fell in choppy trading. The S&P 500 slipped 0.19%, Dow Jones closed flat, and the Nasdaq Composite fell 0.51% to end at 10,958.55.

Also Read: ONGC, Infosys, Inox Wind, Metro Brands, HCL Technologies, Mahindra Logistics stocks in focus on F&O expiry

Nifty technical view: “A long bear candle was formed on the daily chart, that placed at the edge of moving below the support of 18550-18500 levels. This pattern indicates continuation of weakness in the market and lack of strength to sustain the intraday highs. The positive chart pattern like higher tops and bottoms is still active and we expect Nifty to bounce back from the support 18450 levels. If the lower support gets broken, then the market could test another lower base of around 18150 levels. Immediate resistance is placed at 18650 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Key levels to watch for: “Volume profile indicates that Nifty may find support around 18450-18500 zone. According to the OI Data, on the call side, the highest OI was observed at 18700, followed by 18800 strike price. While on the put side, the highest OI was seen at 18500, followed by 18400 strike price. On the other hand, Bank Nifty has support at 42700-42500 zones, while resistance is placed at 43500. The long-term investor may appear to have slightly changed in its investment approach as selective mid-cap and small-cap stocks currently look appealing,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.

IPO Watch: Dharmaj Crop Guard shares are likely to get listed on BSE and NSE today. Dharmaj Crop Guard IPO had received a good response from investors, and the company is likely to see a strong debut on stock exchanges. Dharmaj IPO’s grey market premium (GMP) indicates a listing gain of around 20%. “The industry outlook is bullish as the upward momentum in pesticide industry output is expected to continue going forward, backed by a growth in food consumption in the domestic market amid an expected increase in population, government support for agriculture, demand from export markets, and the horticulture and floriculture markets, among others,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

FII and DII data: Foreign institutional investors (FIIs) net sold shares worth Rs 1,241.87 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 388.85 crore on 7 December, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: Punjab National Bank, GNFC, and Indiabulls Housing Finance are the three stocks under the National Stock Exchange (NSE) F&O ban list for 8 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

Also Read: Markets Wrap Up – 7 December: Stocks down, rupee falls; Asia, Europe markets, Gold, Crude, Crypto updates

Oil at year-low: Crude oil prices fell to its lowest level this year on Wednesday, forfeiting all of the gains since Russia’s invasion of Ukraine exacerbated the worst global energy supply crisis in decades. Brent futures fell $2.18, or 2.8%, to $77.17 a barrel, settling comfortably below the year’s previous closing low of $78.98 a barrel touched on the first day of 2022. U.S. West Texas Intermediate crude fell $2.24, weakening further from Tuesday’s close, which was already a yearly low, to $72.01 a barrel.

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First published on: 08-12-2022 at 07:37:29 am