Indian benchmark indices are likely to open mildly in green as trends in the SGX Nifty hinted at a flat to positive start for the domestic share market. Nifty futures were trading 20 pts or 0.11% higher on the Singapore Exchange. In the previous session, BSE Sensex dropped below 63,000 to close 416 pts lower, while NSE Nifty declined 116 points to 18,696. “Markets will take cues from RBI’s policy meeting, and we expect them to tone down their stance given positive macro data and dovish commentary from Jerome Powell. Also, investors would keenly watch for the outcome of the Gujarat state election. Result in favour of BJP would add to continued momentum as it would mean stability and set the stage for the 2024 election,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Key things to know before share market opens
Global market watch: Shares in Asia rose on Monday morning as China relaxed virus testing rules in some cities, signaling more curbs in the nation’s strict Covid-related restrictions may be further eased. Hong Kong’s Hang Seng index jumped more than 2% in early trade. In mainland China, the Shanghai Composite added 0.78% and the Shenzhen Component increased 0.48%. Japan’s Nikkei 225 gained 0.18%, reversing earlier losses, while South Korea’s Kospi rose 0.28%. Meanwhile, all three major Wall Street indices ended flat on Friday. The Dow Jones Industrial Average rose 0.1%, the S&P 500 lost 0.12%, and the Nasdaq Composite dropped 0.18%.
Nifty Technical view: A small negative candle was formed on the daily chart. This pattern indicates a resumption of minor profit booking in the market from all-time highs. “The present weakness seems to be a minor one as compared to the sharp upmove in the last two weeks. The positive chart pattern like higher tops and bottoms come into scene as per the daily chart. The all-time high of Thursday at 18887 could now be considered as a new higher top of the sequence and present weakness is expected to find higher bottom in the short term. Nifty as per the weekly chart, formed a long positive candle with upper shadow. The near-term uptrend status remains intact for Nifty as per smaller and larger timeframe charts and there is a possibility of an upside bounce from the lows in the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “Over the near term, Nifty sentiment is likely to remain sideways, with 18,500-18,800 to be the crucial range. A decisive breakout from either band may induce a clean directional move in the market. For Bank Nifty, the short term the trend is likely to remain sideways to negative. On the lower end, support is visible at 42,900/42,700. Resistance on the higher end is visible at 43,200/43,500,” said Rupak De, Senior Technical Analyst at LKP Securities
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 214.76 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 712.34 crore on 2 December 2, provisional NSE data shows.
Stocks on F&O ban list on NSE: The National Stock Exchange has kept Punjab National Bank, Delta Corp and Indiabulls Housing Finance on its F&O ban list for 5 December. Securities thus banned include companies where derivative contracts have crossed 95% of the market-wide position limit.
Oil rises: Oil prices edged higher in early trade after OPEC+ nations reaffirmed their oil output targets ahead of a European Union ban and price caps on Russian crude, which kick off on Monday. Brent crude futures climbed 39 cents, or 0.5%, to $85.96 a barrel at 2309 GMT, while US West Texas Intermediate (WTI) crude futures rose 37 cents, or 0.5%, to $80.35 a barrel.
India’s forex reserves rise: India’s foreign exchange (Forex) reserves rose for the third consecutive week due to easing pressure on the rupee after comments from US Fed Chair Powell about slower rate hikes and a fall in crude oil prices. During the week ending 25 November, the forex reserve rose $2.89 billion to $550.14 billion, according to the Weekly Statistical Supplement released by the RBI. The uptick in the foreign exchange reserves is a result of the rise in the Foreign Currency Assets (FCA), which is a major component of the overall reserves. The FCA rose $3.00 billion to $487.29 billion for the week.