Indian share market is likely to open on a positive note on the week’s last trading day, hinted SGX Nifty. On the Singapore Exchange, Nifty futures traded higher at 17688 level. In the previous session, BSE Sensex gained 224 pts to 59,932, while NSE Nifty 50 fell 6 pts to 17,610. “Participants were anticipating some respite after the dovish tone from the US Fed however continuous decline in Adani group counters combined with the scheduled weekly expiry kept the tone negative for most of the session. Indications are pointing towards further consolidation in the index thus we recommend maintaining a sector/stock-specific approach. Among the sectors, IT, FMCG, and select auto look positive to us while others may continue to trade mixed so plan accordingly, said Ajit Mishra, VP – Technical Research, Religare Broking Ltd.
7 things to know before share market opens
Asia markets: Stocks in the Asia-Pacific were mixed on Friday after Wall Street’s rally driven by technology stocks. Hong Kong’s Hang Seng index fell 1.7%, leading losses in the region. In mainland China, the Shanghai Composite fell 0.74% and the Shenzhen Component lost 1.06%. Japan’s Nikkei 225 rose 0.64% and the Topix fell 0.41%. In South Korea, the Kospi also fell 0.14% while the Kosdaq lost 0.13%. Overnight in the US, Dow Jones fell 0.11%, S&P 500 gained 1.47%, and Nasdaq added 3.25%.
Nifty technical view: Nifty shifted into a consolidation with narrow range movement on Thursday and closed the day on a slightly negative note. “A small positive candle was formed on the daily chart with minor upper and lower shadows. Technically, this pattern indicates that the market is in a near-term bottom reversal mode and the Nifty is expected to show pull back rally in the coming sessions. The area of 17500 (200-day EMA) has been acting as a strong support of the market in the last few sessions and we observe an emergence of buying interest from the lows. Hence, further upside from here could pull Nifty towards the crucial overhead resistance of 17800 levels again in the next few sessions before showing another round of downward correction from the highs,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch: “Volume profile indicates Nifty has a strong support around 17400-17500 zone. Coming to the OI Data, on the call side, the highest OI observed at 17800 followed by 18000 strike prices while on the put side, the highest OI was at 17500 strike price. On the other hand, Bank Nifty has support at 39900-40100 while resistance is placed at 41200-41300 range,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.
Q3 Results today: ITC, State Bank of India, Divi’s Labs, Bank of Baroda, Tata Power, InterGlobe Aviation, One 97 Communications (Paytm), Marico, Mahindra & Mahindra Financial Services, Zydus Lifesciences, Manappuram Finance, Aarti Industries, Borosil, Clariant Chemicals, Elgi Equipments, Emami, Engineers India, India Cements, Intellect Design Arena, JK Tyre & Industries, Jubilant Pharmova, Kansai Nerolac Paints, Nava, Praj Industries, Quess Corp, Shipping Corporation of India, Sun TV Network, and Tube Investments of India will report their quarterly earnings on 3 February.
FII and DII data: Foreign institutional investors (FII) sold shares worth Rs 3,065.35 crore, while domestic institutional investors (DII) purchased shares worth Rs 2,371.36 crore on 2 February, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has Adani Ports and Ambuja Cements under its F&O ban list for 3 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.
Crude oil headed for a weekly loss: Oil prices made modest gains in early trade on Friday but were heading for a second straight week of losses, as the market looked for more signs of a strong recovery in fuel demand in China to offset looming slumps in other major economies. Brent crude futures rose 16 cents, or 0.2%, to $82.33 a barrel at 0110 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 18 cents, or 0.2%, to $76.06 a barrel. So far this week, Brent has dropped by 4.8%, extending a 1.1% loss from the previous week. WTI has fallen by 4.5% after sliding 2% in the prior week.