Nifty to reclaim 18400 or correction to continue? 7 things to know before share market opening bell

SGX Nifty in green, hints at positive start for Indian share market. Global cues mixed as Asian markets trade mixed, US stocks rise. Here are 7 things to know before market opening bell.

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Indian Benchmark indices stare at a positive start. Nifty may find support around the 18150-18200 zone which was tested on Tuesday.

Indian benchmark indices are likely to open marginally higher on Wednesday, hinted SGX Nifty. Amid mixed global cues, Nifty futures traded 0.43% higher at 18506 on the Singapore Exchange. In the previous session, BSE Sensex declined 104 points to 61,702, while NSE Nifty 50 fell 35 points to 18,385. “Domestic markets succumbed to global pressure on the back of surge in bond yields, hawkish stance by central banks globally and rising cases of Covid in China. There is a growing recessionary fear among investors which is fading hopes of a Santa Claus rally. Market is expected to consolidate with focus shifting towards budget-oriented sectors,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Key things to know before share market opens

Global market watch: Markets in the Asia-Pacific traded mixed after Wall Street ended higher as global bonds rose marginally after the Bank of Japan adjusted its yield curve control tolerance. Japan’s Nikkei 225 fell 0.98% and the Topix lost 0.65%. The Kospi in South Korea erased earlier gains and was flat. Hong Kong’s Hang Seng index rose 0.5%, while the S&P/ASX 200 in Australia rose 1.39% in its morning trade. Overnight in the US, stocks eked out a gain, snapping a four-day streak of losses. The Dow Jones Industrial Average rose 0.28%, the S&P 500 gained 0.11%, and the Nasdaq Composite ticked up 0.01%.

Nifty technical view: A small positive candle was formed by Nifty on the daily chart with long lower shadow. “Technically, this pattern indicates an emergence of buying interest from the lower levels. The candle pattern of Tuesday signal a formation of bullish hammer pattern that placed beside the long positive candle of previous session. The negative chart pattern of lower tops and bottoms is intact and the low of Tuesday at 18202 could be considered as a new lower bottom of the sequence. Hence one may expect further upside in the short term towards the lower top formation. Immediate resistance is at 18450-18500 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch: “Volume profile indicates Nifty may find support around the 18150-18200 zone which was tested on Tuesday. On the call side, the highest OI was observed at 18500, followed by 18600 strike price. On the put side, the highest OI was seen at 18300 strike price. On the other hand, Bank Nifty has support at 42900-43000 which was also tested yesterday, while resistance is placed at 44000-44200 range. After testing the critical support on an intraday basis but managing to close above supports, it appears that the index has finished its running correction, making buying on dips prudent,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.

FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 455.94 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 494.74 crore on Tuesday, December 20, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: The National Stock Exchange has Delta Corp, GNFC, Indiabulls Housing Finance, IRCTC, and Punjab National Bank stocks under its F&O ban list for 21 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

Buybacks through exchanges to be phased out: The Securities and Exchange Board of India (SEBI) on Tuesday accepted the Keki Mistry committee proposals towards gradually phasing out open market share buybacks by deciding to raise minimum utilisation requirements and creating a separate window for the same. SEBI decided to increase the minimum utilisation of the amount for buyback via stock exchanges to 75% vs 50%. It will also create a separate window on stock exchanges for share buyback. Buyback through the stock exchange route is to be phased out in a gradual manner.

Fitch affirms BBB- rating for India: Fitch Ratings on December 20 said it has affirmed India’s long-term foreign-currency issuer default rating (IDR) at ‘BBB-‘ while maintaining the “stable outlook” that it assigned to the country in June this year. India’s rating reflects “strengths from a robust growth outlook compared to peers and still-resilient external finances”, which have supported India in navigating the large external shocks during the past year, the New York-based rating agency said. According to the agency, India’s economy is likely to grow at 7% in the fiscal ending March 2023. The forecast is underpinned by by “sustained consumption” and “investment recoveries”, it added.

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First published on: 21-12-2022 at 07:27 IST