Nifty to top 17000 or extend losses? Check 7 things to know before market opens

SGX Nifty hinted that the domestic equity indices could see a flat start. Check 7 things to know before market opens on Wednesday.

share markets
Dow Jones closed down 0.1%, S&P 500 ended lower by 0.2%, Nasdaq settled in the red by 0.5%.

SGX Nifty hinted that the domestic equity indices could see a flat start. On the Singapore Exchange, Nifty futures were trading higher, up 4 points, at the 16,994.5 level. On Monday, markets gained mildly as Nifty ended marginally lower, still not reclaiming the 17,000 level, while Sensex settled at 57,613, down 40 points. 

“Indian markets continued to stay in the grip of bears as investors remained cautious in expectation of further tightening from the RBI. While global market sentiment has been improving as the fears of broader contagion from the banking turmoil fade. Back home, Nifty small and midcap stocks continued to underperform due to fall in investors’ risk appetite and FY23 tax harvesting,” said Vinod Nair, Head of Research, Geojit Financial Services.

Key things to know before share market opens

Wall Street Overnight

U.S. stocks ended slightly lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run. Dow Jones closed down 0.1%, S&P 500 ended lower by 0.2%, Nasdaq settled in the red by 0.5%.

Asian Markets

Stocks in Asia-Pacific traded mixed as Japan’s Nikkei 225 gained 0.40% and Hong Kong’s Hang Seng index soared 1.96%. South Korea’s Kospi declined 0.03% in its first hour of trade. China’s Shanghai Composite traded down by 0.46% while the Shenzhen Component gained 0.07%.  

Crude Oil

Crude prices rose for a third day in early Asian trade on Wednesday as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supply and market sentiment improved as fears of a banking crisis eased. Brent crude futures rose 42 cents, or 0.5%, to $79.07 a barrel at 0046 GMT. West Texas Intermediate U.S. crude climbed 59 cents, or 0.8%, to $73.79 a barrel.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth Rs 1,531.13 crore, while domestic institutional investors (DII) net sold equities worth Rs 156.1 crore on 28 March, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no securities on its F&O ban list for 29 March. According to the NSE, stocks are prohibited in the F&O sector when they have 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.

Technical View

“A reasonable negative candle was formed on the daily chart with minor upper and lower shadow. Currently, the Nifty is repeatedly hitting the support of 16’900-16,850 levels and showing lack of strength to sustain the intraday upside bounces. The doji pattern of Monday has not impacted positively for the market in the next session.

“If the Nifty fails to regain strength to move up from the support in the short term, then that action could eventually result in a decisive downside breakout of the support band of 16,900-16,800 levels in the near term. Any upside bounce from here could find strong resistance around 17,100 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

Bank Nifty View

“The fight between the bears and the bulls continued in the Bank Nifty index ahead of the monthly expiry. The index is stuck in a broad range between 39,000-40,000 where a significant amount of call and put writing is visible on the monthly expiry. The index once breaks out of this range will witness a directional move,” said Kunal Shah, Senior Technical & Derivatives Analyst, LKP Securities.

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First published on: 29-03-2023 at 08:17 IST
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