Nifty to hit 18300 or bears to drag index amid uncertainty? Top 7 things to know before market opening bell | The Financial Express

Nifty to hit 18300 or bears to drag index amid uncertainty? Top 7 things to know before market opening bell

Benchmark indices BSE Sensex, NSE Nifty 50 stare at a negative start of weekly F&O expiry. Here are seven things you need to know before stock market opens on Thursday.

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Nifty is likely to encounter next hurdle at 18265 levels and the upmove above this resistance could strengthen upside momentum for the market ahead

Indian share market is likely to open in the red, hinted SGX Nifty. Ahead of the weekly F&O expiry session, Nifty futures were trading 0.5% lower at 18123 level on the Singapore Exchange. In the previous session, the BSE Sensex rallied 390 pts to 61,046, while NSE Nifty 50 jumped 112 pts to 18,165. “Market is showing strength for last two days supported by healthy earning results so far and expectation of strong budget before general election next year. FIIs marginally turning buyers have also helped to uplift the sentiments. If Nifty is able to sustain the two day’s positive move, then we might see further upside, or else we may see sideways movement,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Key things to know before share market opens

Global market watch: Shares in the Asia-Pacific traded mostly lower on Thursday after tracking losses on Wall Street overnight. Japan’s Nikkei 225 and Topix traded down 1.06% and 0.67% respectively. South Korea’s Kospi inched up 0.21%, while the Kosdaq fell 0.23%. Hong Kong’s Hang Seng index fell 0.72% in its first hour of trade, while Mainland China’s Shanghai Composite lost 0.26% and the Shenzhen Component was down 0.31%. Overnight on Wall Street, major stock indexes stumbled, with the S&P 500 recording its worst day in more than a month. The Dow Jones Industrial Average (.DJI) fell 1.81%, and the Nasdaq Composite (.IXIC) dropped 1.24%.

Nifty technical view: “A long bull candle was formed on the daily chart, which indicates an attempt of upside breakout of the triangle pattern at 18050 levels. The market was moving in a larger consolidation band in the last three weeks and is currently in an attempt of upside breakout of the range movement. This is positive indication and one may expect further upside ahead. Presently, the Nifty is likely to encounter next hurdle at 18265 levels and the upmove above this resistance could strengthen upside momentum for the market ahead,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Key levels to watch: “Volume profile indicates 18020-18050 are strong support for coming days. Stock specific action would drive the market in coming days too. Coming to the OI data, the highest OI was observed at 18,300, followed by 18,400 strike prices on the call side. On the put side, the highest OI was seen at 18000 strike price. On the other hand, Bank Nifty has support at 42000 while resistance is placed at 42800-43000 range. We suggest traders to hedge their trading position as markets can be volatile. A cautiously positive approach is advised for the week,” said Om Mehra, Equity Research Analyst, Choice Broking.

Q3 Results today: Hindustan Unilever, Asian Paints, AU Small Finance Bank, Can Fin Homes, L&T Technology Services, Happiest Minds Technologies, Havells India, Hindustan Zinc, Anant Raj, IIFL Wealth Management, IndiaMART InterMESH, ICICI Securities, Mphasis, Polycab India, PVR, and Sterling and Wilson Renewable Energy will report their quarterly earnings on 19 January.

FII and DII data: Foreign institutional investors (FII) net-sold shares worth Rs 319.23 crore, whereas domestic institutional investors (DII) net-purchased equities worth Rs 1,225.96 crore on 18 January, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: The National Stock Exchange has Delta Corp, Manappuram Finance, L&T Finance Holdings, and GNFC stocks under its F&O ban list for 18 January. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Crude oil slips: Oil prices fell further on Thursday as the industry data signalled another big weekly build in US crude inventories. Meanwhile, weak economic data and a potential rise in interest rates fanned growing fears over a looming recession. However, losses in crude markets were limited as traders held out hope for a Chinese economic rebound this year. Brent oil futures fell 0.5% to $84.16 a barrel, while West Texas Intermediate crude futures fell 0.7% to $78.86 a barrel by 01:30 GMT. Both contracts slipped more than 1% on Wednesday following the weak U.S. economic readings.

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First published on: 19-01-2023 at 07:45 IST