SGX Nifty hinted that the domestic equity indices could see a start in the green. On the Singapore Exchange, Nifty futures were trading higher, up 25 points, at the 17,169 level. On Tuesday, markets gained sharply as Nifty reclaimed the 17,000 level, while Sensex settled at 58,074, up over 500 points.
“Gaining buoyancy from a slew of measures to shield the banking sector, global markets witnessed recovery ahead of the US Fed policy announcement on Wednesday. The momentum was passed onto domestic equities, which were led by large-cap banks. However, the gains were capped by IT stocks on caution over muted deal wins from the BFSI segment in the western markets,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
Wall Street closed sharply higher on Tuesday as widespread fears over liquidity in the banking sector abated and market participants eyed the Federal Reserve, which is expected to conclude its two-day policy meeting on Wednesday with a 25 basis-point hike to its policy rate. The Dow Jones Industrial Average rose 0.98%, the S&P 500 gained 1.30% and the Nasdaq Composite added 1.58%.
Stocks in Asia-Pacific traded largely in the positive on Wednesday, echoing the sentiment from Wall Street. Japan’s Nikkei 225 gained 1.85%, and South Korea’s Kospi added 0.95% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded up by 0.41% and 0.67%, respectively. Hong Kong’s Hang Seng index gained 2.19%.
Oil fell in early Asian trade on Wednesday, paring two straight days of gains after an industry report showed U.S. crude inventories rose unexpectedly last week in a sign fuel demand may be weakening. Brent futures, which have risen more than 3% this week, were down 48 cents, or 0.6%, at $74.84 a barrel at 0203 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 47 cents, or 0.7%, at $69.20.
Foreign institutional investors (FII) net sold shares worth Rs 1,454.63 crore, while domestic institutional investors (DII) net acquired equities worth Rs 1,946.06 crore on 21 March, according to the provisional data available on the NSE.
The National Stock Exchange has Biocon
“A small positive candle was formed on the daily chart with a gap up opening. Nifty is currently placed at the crucial overhead resistance of around 17,150-17,200 levels and the market is now showing signs of upside breakout of the hurdle. The lower bottom reversal seems to have confirmed at Monday’s low of 16,828 levels and one may expect further upside in the short term towards the lower top formation. A decisive move above the hurdle of 17,200 levels is likely to bring sharp upside momentum for the Nifty in the near term. Immediate support is at 16,950 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC
Bank Nifty Technical View
“The Bank Nifty
“USD INR spot closed 2 paise higher at 82.66. It was a day of lackluster trading. The next major trigger remains the Fed meeting tomorrow night. We expect a broad range of 82.00 and 83.00 for the rest of the week,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives, Kotak Securities.