SGX Nifty hinted that the domestic equity indices could see a flat start. On the Singapore Exchange, Nifty futures were trading lower, down 8 points, at the 17,251 level. On Wednesday, markets gained as Nifty reclaimed the 17,000 level, while Sensex settled at 57,960, about 350 points. The markets were closed on Thursday on account of the Ram Navami celebrations.
“The home market is being impelled to stay non-sticky in both directions by the continuous instability in the international market. The domestic market’s favorable ending was supported by a significant upswing in both the US and European markets. This volatility is expected to continue until the global banking system fully recovered from the turmoil, along with a confirmation of the Fed’s decision to pause rate hikes,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
U.S. stocks rose on Thursday as technology-related shares extended their recent strong run, while regional U.S. bank shares fell as the Biden administration proposed stronger measures to help reduce risk. The S&P 500 technology index was up 1.1% and gave the S&P 500 its biggest boost. The Dow Jones Industrial Average rose 0.43%, the S&P 500 gained 0.57% and the Nasdaq Composite added 0.73%.
Stocks in Asia-Pacific traded mixed as Japan’s Nikkei 225 gained 0.88% and Hong Kong’s Hang Seng index soared 1.75%. South Korea’s Kospi gained 1% in its first hour of trade. China’s Shanghai Composite traded up by 0.34% while the Shenzhen Component gained 0.35%.
Oil prices were a touch higher on Friday, but were still down more than 3% for the month. U.S. crude futures edged up to $74.42 per barrel, while Brent crude futures rose 0.2% to $79.42 per barrel.
Foreign institutional investors (FII) net bought shares worth Rs 1,245.39 crore, while domestic institutional investors (DII) net acquired equities worth Rs 822.99 crore on 28 March, according to the provisional data available on the NSE.
The National Stock Exchange has no securities on its F&O ban list for 31 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.
“The negative chart pattern like lower tops and bottoms seems to have halted now, as we observe a sustainable upside bounce on Wednesday from a higher bottom of 16,913 levels. Further upside above 17,200 levels is expected to confirm this pattern.
“Nifty on the weekly chart formed a small positive candle pattern at the important lower support of 16,800 levels. The next upper levels to be watched at 17,250 levels. The short term trend of Bank Nifty
Bank Nifty View
“The Bank Nifty index witnessed strong buying momentum in the second half of the session and ended above the level of 40,000. The index to confirm the breakout needs to sustain above this level in the upcoming session. The undertone remains bullish and one should keep a buy-on-dip approach as long as the index stays above the level of 39,500,” said Kunal Shah, Senior Technical & Derivatives Analyst, LKP Securities
Levels To Watch
“Volume profile indicates Index has a strong support around 17,000-16,900 zone. Coming to the OI Data, on the call side, the highest OI observed at 17,200 followed by 17,300 strike prices while on the put side, the highest OI is at 17,000 strike price. On the other hand, Bank nifty has support at 39,300-39,500 while resistance is placed at 40,300-40,500 range,” said Deven Mehata, Equity Research Analyst, Choice Broking.