SGX Nifty hinted that the domestic equity indices could see a start in the green. On the Singapore Exchange, Nifty futures were trading higher by 69.5 points, at the 17,094 level. On Monday, markets gave up their gains from the previous session, but recovered smartly. Nifty recovered over 150 points to close at 16,988 levels with a loss of 0.65% while Sensex settled at 57,628, down 360 points.
“Pessimist mood prevailing across the global markets triggered a major sell-off in the domestic market, as investors are battling a slew of negative news from turmoil in large global banks to macro-economic concerns and falling commodity prices. Traders are also cutting down their equity bets ahead of the US Federal Reserve meeting on interest rates this week, as any aggressive hike in interest rates could spell more trouble for equity markets worldwide,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Key things to know before share market opens
Wall Street Overnight
U.S. stocks jumped on Monday after a deal to rescue Credit Suisse and central bank efforts to bolster confidence in the financial system relieved investors, while participants also weighed the likelihood of a pause in rate hikes from the Federal Reserve this week. The Dow Jones Industrial Average rose 1.2%, the S&P 500 gained 0.89% and the Nasdaq Composite added 0.39%.
Stocks in Asia-Pacific traded largely in the positive on Tuesday, echoing the sentiment from Wall Street. Japan’s Nikkei 225 was the sole loser, trading lower by 1.42%, and South Korea’s Kospi added 0.65% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded up by 0.18% and 0.77%, respectively. Hong Kong’s Hang Seng index gained 0.60%.
Oil prices stabilised on Tuesday after falling early in the previous session on investor worries that recent banking-sector problems would weigh on the global economy and limit demand for crude.
Foreign institutional investors (FII) net sold shares worth Rs 2,545.87 crore, while domestic institutional investors (DII) net acquired equities worth Rs 2,876.64 crore on 20 March, according to the provisional data available on the NSE.
The National Stock Exchange has Biocon and IndiaBulls Housing Finance on its F&O ban list for 21 March. According to the NSE, stocks are prohibited in the F&O sector when 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.
“Markets started the week on a volatile note and lost over half a percent, in continuation to the prevailing trend. After the initial downtick, the Nifty index traded under pressure and slipped below Friday’s low; however, rebound in the select heavyweights trimmed the losses in the latter half. Eventually, it settled at the 16,988.40 level; down by 0.65%. Most of the sectoral indices traded in line with the benchmark wherein metal, realty and IT were among the top losers. Meanwhile, the broader indices underperformed and shed nearly a percent each. Amid all, we are expecting some respite in the Nifty index however the view would negate if it fails to hold 16,800 levels,” said Ajit Mishra, VP – Technical Research, Religare Broking.
Levels to watch
“Volume profile indicates Index has a strong support around 16,750-16,850 zone. Coming to the OI Data, on the call side, the highest OI observed at 17,100 followed by 17,200 strike prices while on the put side, the highest OI is at 16,800 strike price. On the other hand, Bank Nifty has support at 38,700-38,900 while resistance is placed at 39,900-40,050 range,” said Deven Mehata, Equity Research Analyst, Choice Broking.
The government on Monday cut the windfall tax on domestically produced crude oil sharply from Rs 4,400 to Rs 3,500 per tonne. In the latest fortnightly review of the one-off taxes, the government has also hiked the tax levied on the export of diesel to Re 1 per litre from Rs 0.5 per litre.