Indian benchmark indices are expected to open in the green amid positive global cues. Trends in the SGX Nifty hinted at a positive opening for domestic equities as Nifty futures traded 77 pts higher at 18994 on the Singapore Exchange. In the previous session, the BSE Sensex rose 418 points to 63,100, while NSE Nifty 50 jumped 140 points to 18,758. “India is currently seen as a green shoot in an otherwise weak global economic scenario because of its strong macroeconomic performance in recent months. Technically, the Nifty holds the uptrend continuation formation. However, intraday texture is mildly overbought hence we could expect some profit booking at higher levels,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Key things to know before share market opening bell
Global market watch: Markets in Asia traded higher, tracking the optimism behind Wall Street’s rally as US Federal Reserve Chair Jerome Powell confirmed smaller rate hikes could start in December. Hong Kong’s Hang Seng index led gains in the region, rising 2.5% in its first hour of trade. In mainland China, the Shanghai Composite was up 1.29%, while Japan’s Nikkei 225 rose 1.13%. In South Korea, the Kospi gained 0.77% in morning trade. Overnight in the US, all three major indexes ended the session higher, with the S&P ending its 3-day losing streak and the Dow Jones jumping 700 points after Powell’s comments.
Nifty technical view: A long bull candle was formed on the daily chart with minor upper shadow. “Technically, this pattern indicates a continuation of upside momentum in the market. After showing a choppy movement in the last couple of sessions the market displayed a strong upside momentum towards the later part of the session. This is a positive indication. The positive chart pattern of higher tops and bottoms continued on the daily chart. Though Nifty placed near the higher top around 18800 levels, still there is no indication of reversal pattern forming at the highs,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “The Nifty made a new all-time during the day as the Nifty bulls remained at the helm during the day. The crucial short-term moving averages are sitting below the index value, confirming the positive trend. The trend is likely to remain bullish as long as it remains above 18,600 as the support level shifts higher. On the higher end, resistance is visible at 18,800/19,000,” said Rupak De, Senior Technical Analyst at LKP Securities.
“The Bank Nifty index continued to trade in a narrow range between 43,000-43,500 where both the bulls and the bears are sitting on the lines. The undertone remains bullish and one should keep a buy-on-dip approach as long as it maintains the support of 42,800 on the downside. The index on the upside to resume the momentum must surpass the hurdle of 43,500 on a closing basis,” said Kunal Shah, Senior Technical Analyst at LKP Securities.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 9,010.41 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 4,056.40 crore on 30 November, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: Punjab National Bank, BHEL, Delta Corp and Indiabulls Housing Finance are the four securities under the NSE F&O ban list for 1 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
GDP growth falls to 6.3%: India’s GDP growth more than halved to 6.3% in July-September from 13.5% in April-June, data released on 30 November by the Ministry of Statistics and Programme Implementation showed. At 6.3%, the latest quarterly growth number is in line with the Reserve Bank of India’s (RBI) own forecast of 6.3%. In nominal terms, India’s GDP grew by 16.2% last quarter.
Fiscal deficit widens: The central government’s fiscal deficit widened to Rs 7.58 lakh crore in April-October, accounting for 45.6% of the full-year target. The fiscal deficit for April-October 2021 had accounted for 36.3% of the FY22 target. The fiscal deficit in the first seven months of the last financial year was Rs 5.47 lakh crore. As such, the fiscal deficit in April-October of the current financial year is 39% higher on an on-year basis. The government is targeting a fiscal deficit of Rs 16.61 lakh crore for FY23, or 6.4% of GDP.