Indian benchmark indices are likely to open marginally lower in the week’s last trading session. SGX Nifty hinted at a negative start for the domestic share market as Nifty futures traded 50 pts or 0.26% lower at 18925 on the Singapore Exchange. In the previous session, BSE Sensex jumped 185 pts to 63,284, while NSE Nifty 50 rose 54 pts to settle at 18,812. “We may see a bit of consolidation after the recent surge however upbeat global cues would keep the tone positive. Besides, improvement in the broader market participation is added relief. Participants should continue with a positive bias and utilise pause or dip as a buying opportunity. At the same time, one should not go overboard and stick largely with the index majors and quality midcaps,” said Ajit Mishra, VP – Technical Research, Religare Broking.
Key things to know before market opening bell
Global market watch: Markets in the Asia-Pacific fell on Friday, while investors looked for clarity after China signaled a slight easing of its stringent Covid restrictions. Japan’s Nikkei 225 fell 1.48% and South Korea’s Kospi fell 0.97%. Hong Kong’s Hang Seng index rose 0.26% in the first hour of trade. In mainland China, the Shanghai Composite was 0.15% lower. Meanwhile, Wall Street indices ended mixed overnight ahead of a key jobs report. Dow Jones Industrial Average declined 0.56%, the S&P 500 declined 0.08%, and the Nasdaq gained 0.13%.
Nifty technical view: “A small negative candle was formed at the highs, technically this pattern indicates tiredness in the market at the highs. Though Nifty slowed down its momentum at the new highs, there is no confirmation of any negative reversal pattern unfolding at the highs. Hence, the short-term uptrend remains intact. The positive chart pattern like higher tops and bottoms is intact on the daily chart and still there is no indication of any higher top reversal pattern forming at the highs. Nifty as per weekly chart has witnessed a sharp upside breakout of crucial resistance at the highs so far,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “According to the volume profile, 18650 may operate as strong support for Nifty, while 19000 may act as an instant challenge. Bank Nifty, on the other hand, has support at 42900 levels and resistance at 43800,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.
Call/Put OI: According to OI data, the highest call OI was observed at 19000, followed by 18900 strike price, while the greatest put OI was observed at 18800 strike price. The Nifty Put Call Ratio is at 1.04. According to Bank Nifty OI data, the largest OI was observed on the call side at 43500, followed by 43400 strike price, while the highest OI was observed on the put side at 43000 strike price.
FII and DII data: Foreign institutional investors (FIIs) net sold shares worth Rs 1,565.93 crore, while domestic institutional investors (DIIs) net bought equities worth Rs 2,664.98 crore on 1 December, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: Punjab National Bank, BHEL, Delta Corp and Indiabulls Housing Finance are the three securities under the NSE F&O ban list for 2 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
Govt cuts windfall tax on crude: The Central government on Thursday further cut windfall tax on locally produced crude oil and diesel exports. The tax on crude oil produced by firms such as state-owned Oil and Natural Gas Corporation (ONGC) has been reduced to Rs 4,900 per tonne from the existing Rs 10,200 per tonne, as per a government notification. In the fortnightly revision of windfall profit tax, the government also cut the rate on export of diesel to Rs 8 per litre from Rs 10.5 per litre. The levy includes Rs 1.5 per litre as road infrastructure cess.