Nifty to head towards 18400 or fall to retest 18000? 7 things to know before share market opening bell | The Financial Express

Nifty to head towards 18400 or fall to retest 18000? 7 things to know before share market opening bell

Indian benchmark indices BSE Sensex and NSE Nifty 50 are expected to open in the green as trends in the SGX Nifty hinted at a positive opening for domestic equities.

Nifty to head towards 18400 or fall to retest 18000? 7 things to know before share market opening bell
On Bank Nifty, The bears are forming a grip around the 42,500-42,600 zone and if breached on the upside will lead to a sharp short covering move towards 43,500-44,000 levels

Indian benchmark indices are expected to open in the green as trends in the SGX Nifty hinted at a positive opening for domestic equities. Nifty futures on the Singapore Exchange traded 40 pts higher at 18,245. In the previous session, BSE Sensex declined 519 pts to 61,145, while NSE Nifty 50 slipped 148 points to 18,160. “Participants should see the dip as normal profit taking after the recent surge and we expect the 17950-18050 zone to act as immediate support in Nifty. While we’re seeing a mixed trend across sectors, resilience in the banking space is playing a critical role in capping the damage so far. We recommend continuing with a stock-specific trading approach and maintaining positions on both sides,” said Ajit Mishra, VP – Technical Research, Religare Broking.

Key things to know before share market opens

Global market watch: Global cues were mixed as shares in the Asia-Pacific were mixed today, while US stocks fell overnight in a volatile session to start a short trading week due to the Thanksgiving holiday. In Asia, Japan’s Nikkei 225 climbed 0.75%, Hong Kong’s Hang Seng index gained 0.45%, and South Korea’s Kospi slipped 0.22%. Over in the US, S&P 500 shed 0.39%, Nasdaq fell 1.09%, and Dow Jones Industrial Average fell 0.13%.

Also Read: Share Market LIVE: Nifty, Sensex likely to open in green; Kaynes Technology share listing today

Nifty technical view: “A long negative candle was formed on the daily chart, which indicates ongoing downward correction in the market. The immediate support of the last month (10-day EMA) has been broken on the downside at 18250 levels and Nifty closed lower. The market is now sliding down to the next important cluster support of around 18100-18000 levels (previous opening upside gap of 11 Nov, 20day EMA and previous tops as per change in polarity). This is going to be crucial support for the market, and one may expect an upside bounce from the lower levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “We expect 18250 to act as a key resistance zone for the market and if the Nifty index slips below the same, it could retest 18050-18000. On the flip side, above 18250 the index could move up to 18400-18450. Contra traders can take bets near 18000 with a strict 17950 support stop loss,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

Bank Nifty outlook: “The Bank Nifty index continued to witness a tug-of-war between the bulls and the bears and the index formed a Doji candle on the daily chart. The index lower-end support stands at 42000 where the higher open interest is built up on the put side which will act as a line of defense for the bulls. The bears are forming a grip around the 42,500-42,600 zone and if breached on the upside will lead to a sharp short covering move towards 43,500-44,000 levels,” said Kunal Shah, Senior Technical Analyst at LKP Securities.

IPO Watch: Kaynes Technology shares will debut on bourses on Tuesday. The Electronics manufacturing company shares are expected to put up a stellar performance despite recent volatility and consolidation in the equity market. The subscription numbers for the IPO, the government’s increased focus on defence sector, a healthy order book with good revenue visibility and a strong customer base hint at premium listing. The listing premium is likely to be in the range of 35-40 percent over issue price of Rs 587 per share, according to analysts.

FII and DII data: Foreign institutional investors (FIIs) net offloaded shares worth Rs 1,593.83 crore, while domestic institutional investors (DIIs) net purchased equities worth Rs 1,262.91 crore on 21 November, according to the provisional data available on the NSE.

Also Read: Nykaa, NDTV, Kaynes Technology, Reliance, Lupin, Bharti Airtel, Power Finance Corp, Delhivery stocks in focus

Stocks under F&O ban on NSE: Escorts, Gujarat Narmada Valley Fertilizers and Chemicals, Indiabulls Housing Finance, Punjab National Bank, and Sun TV Network are the five stocks under NSE F&O ban list for 22 November. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

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First published on: 22-11-2022 at 07:45 IST