Nifty to reclaim 18100 or bears to drag index amid FPI outflow? 8 things to know before market opening bell | The Financial Express

Nifty to reclaim 18100 or bears to drag index amid FPI outflow? 8 things to know before market opening bell

Trends in the SGX Nifty hint a positive opening for the Indian share market. Nifty futures trading around 18,060 levels on the Singapore Exchange, signalling that BSE Sensex and NSE Nifty 50 may open in green.

Nifty, Bank Nifty, stock market, crude oil
Nifty is respecting a key support level of 17800, but the 20-DMA around 18100 is an immediate and critical hurdle that needs to be crossed for any strength in the market.

Indian benchmark indices may open in green amid strong global cues. Ahead of the session, Singapore Exchange (SGX) Nifty futures traded 20 pts higher at 18,058.5, signalling at a positive opening for the Indian stock market. On Friday, BSE Sensex rallied 303 pts to 60,261, while NSE Nifty 50 climbed nearly 100 pts to 17,957. “Banking sector will be in focus this week, reacting to the HDFC Bank’s numbers. Overall the global sentiments are turning positive due to decelerating inflation pressures, which along with better than expected domestic economic data and stable IT results could give support to the markets and help to move higher,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Key things to know before market opens

Global market watch: Markets in the Asia-Pacific traded mixed as expectations of cooled inflation in the US lifted investor sentiment in the region. Japan’s Nikkei 225 fell 1% and the Topix shed 0.61%. South Korea’s Kospi inched up 0.2% and the Kodaq gained 0.62%. Hong Kong’s Hang Seng index was flat while the Shanghai Composite in Mainland China rose 0.43% and the Shenzhen Component rose 0.66%. Meanwhile, Wall Street stocks ended in green on Friday. The Dow Jones Industrial Average rose 0.33%, the S&P 500 gained 0.40%, and the Nasdaq Composite added 0.71%.

Nifty technical view: “The Nifty, in the week gone by, witnessed sharp swings in both the directions & ultimately posted a positive weekly close. It has formed a Doji pattern on the weekly chart. For the last few weeks, the index is trading above the 20 WMA, which has resulted in a Triangle pattern formation on the daily chart. After a recent base formation near the lower end of the pattern, the Nifty witnessed smart recovery on January 13. Going ahead, 18000-18050 will be the key area beyond which the index will be set for a larger up move. On the downside, 17800 will continue to provide cushion for the index,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.

Key levels to watch: “Nifty is respecting a key support level of 17800, but the 20-DMA around 18100 is an immediate and critical hurdle that needs to be crossed for any strength in the market, and the 50-DMA around 18300 will be the next hurdle. However, if Nifty slips below the 17800 level decisively, then we can expect a move towards the 17625 and 17425 levels. Bank Nifty is respecting its support at 41725, but the cluster of the 20 and 50-DMA around 42700 is a critical hurdle; above this, we can expect a move towards 43400. On the downside, the 100-DMA around 41300 is the next important support level,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

FII and DII data: Foreign institutional investors (FII) net sold shares worth Rs 2,422.39 crore, while domestic institutional investors (DII) bought eqities worth Rs 1,953.40 crore on 13 January, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: Indiabulls Housing Finance and GNFC stocks remain under the NSE F&O ban list for 16 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.

Q3 Results today: Federal Bank, Angel One, JSW Ispat Special Products, Tinplate Company of India, Kesoram Industries, Bank of Maharashtra, Shree Ganesh Remedies, and Trident Texofab will report their quarterly earnings on Monday, 16 January.

FII selling persistent: Foreign portfolio investors (FPIs) offloaded equities worth around Rs 15,000 crore in the first two weeks of January amid risks of Covid in some parts of the world and recession fears in the US. FPIs have been adopting a cautious stance towards Indian equity markets for the past few weeks as they have made a net withdrawal of Rs 15,068 crore from the Indian equity markets during January 2-13. Only two of the 10 trading days in January to date saw net purchases, data available with the depositories showed.

Crude Oil dips: Oil prices dipped in early Asian trade on Monday, but held close to the highest levels since the start of the year on optimism that China’s reopening will lift fuel demand at the world’s top crude importer. Brent crude fell 36 cents, or 0.4%, to $84.92 a barrel by 0116 GMT while U.S. West Texas Intermediate crude was at $79.65 a barrel, down 21 cents, or 0.3%, amid thin trade during a U.S. public holiday. Both contracts rose more than 8% last week, the biggest weekly gain since October, after China’s crude imports rose 4% on-year in December while Lunar New Year travel brightens the outlook for transportation fuels

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First published on: 16-01-2023 at 07:52 IST