Indian benchmark indices are likely to open in green, hinted SGX Nifty on Tuesday. On the Singapore Exchange, Nifty futures were trading 0.48% higher at 17846 level. In the previous session, BSE Sensex fell 335 pts to 60,507, while NSE Nifty 50 declined 89 pts to 17,765. “If markets have to regain strength, we need to surpass these pivotal points with some authority. Until then, we may continue with similar range-bound movement and the real action would continue in individual pockets. Traders are advised to keep focusing on such movers and should ideally avoid aggressive overnight bets,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd.
Key things to know before share market opens
Global market watch: Stocks in the Asia-Pacific traded higher on Tuesday, as investors await Reserve Bank of Australia’s rate decision. In Australia, the S&P/ASX 200 rose 0.15%, erasing earlier losses. Hong Kong’s Hang Seng index led gains in the region and rose 1.04%. In mainland China, the Shenzhen Component was flat. Japan’s Nikkei 225 gained 0.22% and South Korea’s Kospi also rose 0.6%. Overnight in the US, Wall Street extended losses as investors digested last week’s economic data that showed there’s more room for the Federal Reserve to hike rates further. The Nasdaq Composite led losses as investors grew increasingly cautious of rising bond yields. Dow Jones and S&P 500 also closed lower.
Nifty technical view: Markets ended lower on Monday. The Nifty finally lost 89.45 points or 0.5% to close at 17,764.6. “On Daily chart, we observe that Nifty has bounced back smartly after finding support near the 200-day EMA. The index is now finding resistance near the 20-day SMA and has reacted from there on Monday. While the bias remains positive, we expect the Nifty to consolidate in a range between the 17400-18000 levels for the next few sessions. Traders need to focus on stock-specific action to make money,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
Key levels to watch: “Volume profile indicates that Nifty has a strong support around 17450-17550 zone. Coming to the OI Data, on the call side, the highest OI observed at 17900 followed by 18000 strike prices while on the put side, the highest OI was at 17600 strike price. On the other hand, Bank Nifty has support at 40700-40800 while resistance is placed at 41900-42100 range,” said Om Mehra, Equity Research Analyst, Choice Broking.
FII and DII data: Foreign institutional investors (FII) sold shares worth Rs 1,218.14 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,203.09 crore on 6 February, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has Adani Ports stock on its F&O ban list for 7 February. 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.
Q3 Results today: Bharti Airtel, Hero MotoCorp, Ambuja Cements, Adani Ports and Special Economic Zone, Adani Green Energy, NDTV, Aditya Birla Fashion and Retail, Astral, Barbeque-Nation Hospitality, Bharat Dynamics, Computer Age Management Services, Deepak Nitrite, Gujarat Fluorochemicals, GSK Pharma, Kalyan Jewellers India, Motherson Sumi Wiring India, Navin Fluorine International, NHPC, Phoenix Mills, Ramco Cements, Rashtriya Chemicals & Fertilizers, Sobha, Thermax, and Wonderla Holidays will report their quarterly earnings on Tuesday.
Crude edges higher: Oil prices rose for a second day on Tuesday on supply concerns after an earthquake shuttered a major export terminal in Turkey and a field in the North Sea shut unexpectedly, while demand in China, the world’s biggest importer, looks set to increase. Brent crude futures rose 40 cents, or 0.5%, to $81.39 per barrel by 0117 GMT, while West Texas Intermediate futures rose 43 cents, or 0.6%, to $74.54 per barrel.