Indian benchmark indices are likely to open on a tepid note amid weak global cues. SGX Nifty was mildly red with Nifty futures trading 49 pts or 0.27% lower at the Singapore Exchange, hinting at a flat to negative start for the Indian share market. In the previous session, BSE Sensex rose 21 points to 62,294, while NSE Nifty 50 climbed 29 points to 18,513. “Going ahead, the lack of strong fundamental triggers will limit the upside, keeping the market volatile in the short term. The Fed Chair’s speech, which is scheduled for this week, and the release of other significant macroeconomic data will influence the market’s future trajectory,” said Vinod Nair, Head of Research at Geojit Financial Services.
Key things to know before share market opening bell
Global markets: Asian markets traded weak on Monday. Hong Kong’s Hang Seng index fell 4% at open. In Mainland China, the Shanghai Composite fell 1.55% and the Shenzhen Component also fell 1.6%. Japan’s Nikkei 225 shed 0.51% in early trade, and South Korea’s Kospi declined 1.08%. Over in the US, Wall Street stocks ended the week higher as retailers pinned their hopes on the official start to holiday shopping. The Dow Jones Industrial Average closed up 153 points or 0.45%, while the S&P 500 was down flat, and the NASDAQ Composite was down 0.5%.
Nifty technical view: “A small negative candle was formed on the daily chart with a minor lower shadow. Technically, this pattern signals a breather movement in the market post the sharp up move of last session and this could be considered as an uptrend continuation pattern. Nifty on the weekly chart formed a long bull candle with lower shadow. After surpassing the hurdle of 18100 levels few weeks back, the market has witnessed a decisive upside breakout of another resistance of 18400 levels last week and closed higher. The underlying trend of Nifty continues to be positive. Having surpassed the crucial upper resistance in the previous week,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch for: “Nifty could continue its upmove and challenge the all time high of 18604 soon while 18325-18403 band could provide support in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities. Technical support for the Bank Nifty is located around 42550, with resistance at 43300, according to Ameya Ranadive, Equity Research Analyst, Choice Broking.
IPO Watch: Dharmaj Crop Guard IPO will open for subscription on 28 November, and close on 30 November. The agrochemical company on Friday mobilised Rs 74.95 crore via anchor book ahead of the IPO. The company finalised allocation of 31.62 lakh equity shares to anchor investors, at Rs 237 per share. Three investors – Elara India Opportunities Fund, Rajasthan Global Securities, and Resonance Opportunities Fund – invested in the company via anchor book.
FII and DII data: Foreign institutional investors (FIIs) net bought equities worth Rs 369.08 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 295.92 crore on Friday (25 November), according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: As it is the beginning of the December F&O series, the National Stock Exchange has not added a single stock under the NSE F&O ban list for 28 November.
FPIs flock to Indian market: Foreign portfolio investors flocked to Indian share market making a net investment of Rs 31,630 crore in November on hopes of an end to the aggressive rate hikes, and positivity about overall macroeconomic trends. According to data available with the depositories, FPIs invested a net sum of Rs 31,630 crore in equities during November 1-25. In comparison, there was a net outflow of Rs 8 crore and Rs 7,624 crore in October and September, respectively. Experts believe that FPIs are unlikely to be major sellers going forward.