Bulls may remain laid back on the week’s last trading day as trends in the SGX Nifty hinted at a flat to negative opening for the Indian share market. Nifty futures traded 41 pts down at around 18,626 levels on the Singapore Exchange. In the previous session, BSE Sensex jumped 762 points to 62,273, while NSE Nifty 50 rose 217 points to 18,484. “Markets have reclaimed buoyancy and we expect the tone to continue however participants shouldn’t go overboard and continue with selective buying. The banking and IT pack look firm to us while others are seeing a mixed trend. We reiterate our preference for index majors and quality midcaps and suggest focusing more on overnight risk management,” said Ajit Mishra, VP – Technical Research, Religare Broking.
Key things to know before share market opens
Global market watch: Shares in the Asia-Pacific traded mostly lower as markets in the US were closed on Thursday for the Thanksgiving holiday and will end its session early on Friday Hong Kong’s Hang Seng index led losses. In mainland China, the Shanghai Composite fell 0.3%. Japan’s Nikkei 225 fell 0.15% and the Topix was flat. In South Korea, the Kospi fell 0.1%. Stocks in Malaysia closed more than 4% higher, with the benchmark index reaching its highest levels in more than two months.
Nifty technical view: A long bull candle was formed on the daily chart, which indicates an attempt of sharp upside breakout of the crucial resistance around 18400 levels. “This also signal an upside breakout of the range movement of the last two weeks. Positive chart pattern like higher tops and bottoms continued on the daily chart and the recent swing low of 18133 could now be considered as a new higher bottom of the sequence. Further upmove from here is likely to pull Nifty towards the new higher top,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: Nifty could now head towards its all-time high of 18604 while 18325-18410 band could provide support, according to Deepak Jasani, Head of Retail Research, HDFC Securities. “Bank Nifty has witnessed a fresh breakout on the daily chart, pushing it higher towards the level of 44,000 in the near term. The lower-end support is now visible at 42,600 which will act as a cushion for the bulls. The broader participation will resume in markets helping it to scale on the higher end,” said Kunal Shah, Senior Technical Analyst at LKP Securities.
FII and DII data: Data available on the NSE showed that foreign institutional investors (FIIs) net bought shares worth Rs 1,231.98 crore, while domestic institutional investors (DIIs) net offloaded equities worth Rs 235.66 crore on Thursday, 24 November.
Slower growth for India: A recession is unlikely in the APAC region in the coming year, although the area will face headwinds from higher interest rates and slower global trade growth, Moody’s Analytics said on Thursday. In its analysis titled ‘APAC Outlook: A Coming Downshift’, Moody’s said India is headed for slower growth next year more in line with its long-term potential. On the upside, inward investment and productivity gains in technology as well as in agriculture could accelerate growth. But, if high inflation persists, the Reserve Bank of India would likely take its repo rate well above 6 per cent, causing GDP growth to falter.
Crude prices rise: Oil rose in early trade on Friday, trimming some of the week’s losses which have been driven by worries about Chinese demand and expectations a high price cap planned by the Group of Seven (G7) nations on Russian oil will keep supply flowing. Brent crude futures inched up 13 cents, or 0.2%, to trade at $85.47 a barrel at 0121 GMT. U.S. West Texas Intermediate (WTI) crude futures jumped 35 cents, or 0.5%, from Wednesday’s close to $78.32 a barrel, reported Reuters. There was no WTI settlement on Thursday due to the US Thanksgiving holiday.
Unemployment rate dips: The unemployment rate for persons aged 15 years and above in urban areas declined to 7.2% during July-September 2022 from 9.8% a year ago, the National Statistical Office (NSO) said. The latest data points towards a sustained economic recovery from the shadow of the pandemic. The unemployment rate for persons aged 15 years and above in April-June 2022 was 7.6% in urban areas. Meanwhile, the unemployment rate among females (aged 15 years and above) in urban areas declined to 9.4% from 11.6% a year ago.