Domestic benchmark indices BSE Sensex and NSE Nifty 50 are expected to open in the red on weekly F&O expiry amid weak global cues. Trends SGX Nifty hinted at a flat to negative start for Indian markets as Nifty futures traded 46 pts or 0.25% lower at around 18,433 level. According to analysts, after last week’s spectacular rally, investors are in no hurry to lap up stocks despite some tailwinds in the domestic economy. “Nifty is witnessing narrow range trade over the last four sessions with the close over these days being in an 80 point band. It is now due for a largish move, most likely on the lower side, although the high of this upmove is yet to be made. Nifty could trade in the 18458-18179 band for the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Key things to know before market opening bell
Global market watch: Wall Street’s main indices ended lower on Wednesday as investors weighed a gloomy fourth-quarter outlook cut from Target, while shares in the Asia-Pacific traded mixed in morning trade as a number of economic data is released in the region. In the US, Dow Jones Industrial Average fell 0.12%, the S&P 500 lost 0.83%, and Nasdaq dropped 1.54%. Meanwhile, in Asia, Japan’s Nikkei 225 shed 0.13%, and Topix gained 0.39%. South Korea’s Kospi fell 0.6% after a delayed open due to national scholastic exams.
Nifty technical view: “Technically, the Nifty has formed a small Doji candle on daily charts. The current market texture is non-directional and a fresh uptrend is possible only after the 18450 breakout level. Above this, the index could hit the level of 18550-18600. On the flip side, dismissal of 18350 could accelerate the selling pressure, which could see the index retest the level of 18250-18200,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. According to Choice Broking, the overall structure shows that Nifty is likely to rise in the coming days. However, 18250-18650 would be an important range as well for short-term traders.
Levels to watch for: “Nifty may find support around 18250 followed by 18200 levels while on the upside 18550-18600 may act as an immediate hurdle. On the derivatives front, the highest call OI is at 18600 strike price while on the put side, highest OI remains at 18200 strike price. On the other hand, Bank Nifty has support at 41900 levels while resistance is placed at 43200. India VIX has managed to remain under 16 levels. The US inflation rate reaching its high and the potential for a slower rate of rate increases are the biggest positive factors for equity markets worldwide,” said Om Mehra, Technical Associate, Choice Broking.
IPO Watch: Kaynes Technology share allocation can be announced anytime on Thursday as the Kaynes Technology IPO share allotment date is 17 November 2022. After announcement of share allotment, bidders can check their IPO application status online by logging in at the BSE website on the website of its official registrar Link Intime India Private Ltd. Shares of Kaynes Technology Ltd are commding a grey market premium of Rs 95.
Oil falls: Oil prices settled more than a dollar lower on Wednesday after Russian oil shipments via the Druzhba pipeline to Hungary restarted and as rising Covid-19 cases in China weighed on sentiment. Brent crude futures settled a dollar lower at $92.86 a barrel, down 1.1 percent. US West Texas Intermediate (WTI) crude futures slid by $1.33, or 1.5 percent, to settle at $85.59 a barrel.
FII and DII data: Foreign institutional investors (FIIs) net sold shares worth Rs 386.06 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,437.40 crore on 16 November, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has Balrampur Chini Mills and Indiabulls Housing Finance along with BHEL, Delta Corp, Sun TV Network, and Gujarat Narmada Valley Fertilizers and Chemicals under its F&O ban list for 17 November. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.