Indian benchmark indices are likely to open in green on Wednesday, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading higher at 17797 level. In the previous session, BSE Sensex fell 221 pts to 60,286, while NSE Nifty 50 fell 43 pts to 17,722. “Although, key indices are not doing much, individual pockets are showing good traction, and traders can continue to identify such potential movers that are likely to provide better trading opportunities. For the coming session, all eyes will be on the RBI governor and his commentary,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.
Key things to know before share market opens
Global market watch: Asia-Pacific markets traded mixed on Wednesday, as US Fed Chairman Jerome Powell overnight acknowledged that inflation is declining — a sign the central bank may soon pause its rate hikes. Japan’s Nikkei 225 fell 0.6%, while South Korea’s Kospi rose 1.16%, leading gains in the region. Hong Kong’s Hang Seng index fell 0.4%, while in mainland China, the Shanghai Composite fell marginally. In the US, Dow Jones rose 0.78%, the S&P 500 gained 1.29%, and Nasdaq added 1.9% on Tuesday.
Nifty technical view: Markets ended lower on Tuesday. “On Daily chart, we observe that Nifty has bounced back smartly after finding support near the 200-day EMA. The index is now finding resistance near the 20-day SMA and has reacted from there on Monday. While the bias remains positive, we expect Nifty to consolidate in a range between 17400-18000 levels for the next few sessions. Traders need to focus on stock-specific action to make money,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
Key levels to watch: For Nifty, 17870 – 17854 could be the trading range in the near term. Stiff resistance around the 17,800-17,850 zone where aggressive call writing is visible. “The support on the lower end is at the 17,600 level and if breached. will lead to a further correction towards 17,450-17,400 levels,” said Rupak De, Senior Technical Analyst at LKP Securities. For Bank Nifty, 41,000 is a support and 42,000 is a resistance. “The index needs to break this range on either side decisively for trending moves. The undertone remains bearish within the range and once should keep a buy-on-dip approach” said Kunal Shah, Senior Technical Analyst at LKP Securities.
FII and DII data: Foreign institutional investors (FII) sold shares worth Rs 2,559.96 crore, while domestic institutional investors (DII) purchased shares worth Rs 639.82 crore on 7 February, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has added Ambuja Cements on its F&O ban list for 8 February. According to the NSE, the stock mentioned above is prohibited in the F&O sector because it has 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.
RBI Monetary Policy: All eyes will be on RBI Governor Shaktikanta Das when he unveils the outcome of the crucial monetary policy review today, the last one for this financial year, and the first one in this calendar year. According to most economists, the RBI Monetary Policy Committee (MPC) will hike the key policy rate by 25 basis points, while economists at SBI say that the central bank may hit the pause button, maintaining the current ‘withdrawal of accommodation’ stance.
Oil edges higher: Crude oil prices rose early on Wednesday, extending gains from the previous two days, as the dollar fell after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than markets had expected and as U.S. crude stocks surprisingly fell. Brent crude futures inched up by 11 cents, or 0.1%, to $83.80 a barrel at 0119 GMT, adding to a 3.3% gain in the previous session. U.S. West Texas Intermediate (WTI) crude futures advanced by 13 cents, or 0.2%, to $77.27 a barrel, after jumping 4.1% in the previous session.