Indian benchmark indices are likely to open on a tepid note amid mixed global cues, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading 35 pts or 0.19% higher at 18,111.0. In the previous session, BSE Sensex gained 562.75 points or 0.94% to end at 60,655.72, and NSE Nifty 50 settled 158.50 points or 0.89% higher at 18,053.30. Market has witnessed a subtle recovery from the strong support zone, according to analysts. “We would encourage the traders to utilize the dips to add long positions in the indices. Also, the individual pockets are doing well, and one should focus on the stock-centric approach for the time being. Simultaneously, traders should keep a close tab on the levels mentioned and stay abreast of domestic and global developments,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd.
Key things to know before share market opens
Global market watch: Asia-Pacific shares traded mixed on Wednesday as investors await the outcome of the Bank of Japan’s monetary policy meeting. Japan’s Nikkei 225 climbed 0.66% and the Topix edged up 0.39%. Hong Kong’s Hang Seng index dropped 0.17% in the first hour of trade, and Mainland China’s Shanghai Composite added 0.13%. Meanwhile, South Korea’s Kospi lost 0.68% while the Kosdaq added 0.14%. Overnight in the US, Wall Street indices ended mixed on Tuesday as weak earnings from Goldman Sachs dragged Dow lower, but a jump in Tesla shares helped the Nasdaq stay postive. The Dow Jones Industrial Average fell 1.14%, the S&P 500 lost 0.20%, and the Nasdaq Composite added 0.14%.
Nifty technical view: “A long bull candle was formed on the daily chart, that has engulfed the negative candle of previous session. Technically, this pattern indicates chances of upside breakout of the sideways range movement of 18100-17800 levels in the short term. The triangle pattern on the daily chart is still intact. The underlying short-term trend of Nifty is positive. The market is currently placed at the edge of upside breakout of the consolidation or triangle pattern around 18100 levels. A decisive upside breakout with confirmation could open a large upside for the market ahead. Any lack of strength during upside breakout is likely to result in reversal of uptrend,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch: “Volume profile indicates Nifty may find support around the 17750-17850 zone. Coming to the OI Data, on the call side, the highest OI observed at 18200 followed by 18300 strike prices while on the put side, the highest OI was at 17900 strike price. On the other hand, Bank Nifty has support at 41800-41900 while resistance is placed at 42500-42600 range. We suggest traders to keep booking profits in their trading positions as markets are trading in a wide range with high volatility,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.
Q3 Results today: IndusInd Bank, Alok Industries, CCL Products (India), Central Bank of India, Oracle Financial Services Software, Persistent Systems, PSP Projects, Rallis India, Shemaroo Entertainment, and Surya Roshni will report their quarterly earnings on 18 January.
FII and DII data: Foreign institutional investors (FII) turned net buyers after selling for 18 straight sessions. They bought equities worth Rs 211.06 crore, while domestic institutional investors (DII) net purchased shares worth Rs 90.81 crore on 17 January, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has Delta Corp, Manappuram Finance, L&T Finance Holdings, Indiabulls Housing Finance and GNFC stocks under its F&O ban list for 18 January. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit. 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.
Crude Oil prices edge higher: Oil prices rose on Wednesday, extending the previous session’s gains, driven by optimism that a relaxation of China’s strict COVID-19 curbs will lead to a recovery in fuel demand in the world’s top oil importer. Brent crude futures were up 52 cents, or 0.6%, at $86.44 a barrel at 0151 GMT, following a 1.7% rally in the previous session. U.S. West Texas Intermediate (WTI) crude futures gained 55 cents, or 0.7%, to $80.73 a barrel, having risen 0.4% on Tuesday. OPEC said in a monthly report Chinese oil demand would grow 510,000 barrels per day (bpd) this year. But OPEC kept its 2023 global demand growth forecast unchanged at 2.22 million bpd.