Indian benchmark indices are likely to open higher amid strong global cues, hinted SGX Nifty on Monday. On the Singapore Exchange, Nifty futures traded 83 pts higher at 18,128 level. In the previous session, Sensex fell 237 pts to 60,622, while NSE Nifty 50 declined 80 pts to 18,028. “Market is likely to remain in a consolidative range with stock-specific action on Q3FY23 results and the upcoming budget. Metals, IT, and Capital Goods are likely to remain in momentum. Banking sector would be in focus this week after results of ICICI Bank, Kotak Bank, and IDFC First Bank over the weekend,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Key things to know before share market opens
Global market watch: Asia-pacific markets were largely trading in green on Monday. Japan’s Nikkei 225 rose 1.15%, while South Korea’s Kospi gained 0.63%. Australian shares touched their highest in nearly nine months, as technology stocks tracked Wall Street’s strong finish last week and firm crude oil prices lifted energy stocks. The S&P/ASX 200 index rose 0.1% to 7,458.00, extending gains to a fourth session. Trading volumes were low, with some major Asian markets including key trading partner China closed for holidays. S&P E-minis futures were up 0.1%. US stocks rallied to close higher on Friday. Dow Jones Industrial Average rose 1%, S&P 500 gained 1.89%, and Nasdaq added 2.66%.
Nifty technical view: “The Nifty continued to consolidate just above the 20 WMA for yet another week. On the weekly chart, it has formed a Doji pattern for the second consecutive week. This shows indecision in the minds of the market participants. The daily chart reveals that the index has moved out of a base triangle formation. Post the breakout, however, the Nifty is witnessing a brief consolidation before it embarks on a larger up move. Immediate support is at 18,000 where fresh buying interest can be seen. The short-term bullish stance holds true as long as the Nifty trades above the swing low of 17,760. On the higher side, the Nifty is expected to surpass the key hurdle zone of 18,260-18,300 & head towards 18,500,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
Key levels to watch: “According to the volume profile, Nifty may find support in the 17,750-17,850 level. In terms of OI data, the call side had the highest OI at 18,100, followed by 18,200 strike prices. While the put side had the highest OI at 17,900 strike price. Bank Nifty has support at 41,900-42,000 and resistance at 42,900-43,000. We believe that the market will be quite volatile. We recommend that you use a stock-specific method,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst, Choice Broking.
FII and DII data: Foreign institutional investors (FII) net offloaded shares worth Rs 2,002.25 crore, whereas domestic institutional investors (DII) net bought equities worth Rs 1,509.09 crore on 20 January, according to the provisional data available on the NSE. So far this month, Foreign investors pulled out a net amount of Rs 15,236 crore on attractive Chinese markets and concerns about the US economy entering a recession. The outflow in the month of January came following a net inflow of Rs 11,119 crore in December and Rs 36,239 crore in November.
Stocks under F&O ban on NSE: The National Stock Exchange has PVR, Delta Corp and L&T Finance Holdings stocks under its F&O ban list for 20 January, Monday. 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 on 23 January: Axis Bank, IDBI Bank, Canara Bank, Container Corporation of India, Amber Enterprises India, Craftsman Automation, Butterfly Gandhimathi Appliances, Gland Pharma, Gravita India, HFCL, Jammu & Kashmir Bank, Jindal Stainless, Poonawalla Fincorp, Route Mobile, Shoppers Stop, Syngene International, Tata Communications, Tamilnad Mercantile Bank, and Zensar Technologies will report their quarterly earnings on 23 January.
Crude oil price edge lower: Oil prices drifted lower in early trade on Monday, thinned by the Lunar New Year holiday in east Asia, but held on to most of last week’s gains on the prospect of an economic recovery in top oil importer China this year. Brent crude futures retreated by 46 cents, or 0.5%, to $87.17 at 0031 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 40 cents, also down 0.5%, to $81.24 a barrel. Last week, Brent rose 2.8%, while the U.S. benchmark logged a 1.8% gain.