Indian benchmark indices may open marginally in the red on monthly F&O expiry, hinted SGX Nifty on Wednesday. Nifty futures traded lower at 18,110 level on the Singapore Exchange. “Market is likely to continue its range bound movement ahead of release of US GDP data on Thursday, which would set the tone for the upcoming US Fed meeting on 1 February. This along with Union Budget on the same day would provide some direction, until then the market would take cues from the quarterly earnings,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Key things to know before market opening bell
Global market watch: Asia-Pacific shares traded mixed on Wednesday, taking the lead from Wall Street’s struggle for direction. In South Korea, the Kospi rose 1.3%, while the Kosdaq climbed 1.16% in its first hour of trade. Japan’s Nikkei 225 dipped 0.22% and the Topix shed 0.06%. Australia’s S&P/ASX 200 declined 0.43% as investors await the release of the country’s inflation reading. Markets in China and Hong Kong are closed for a holiday. Overnight in the US markets, major indexes struggled for direction. Dow Jones rose 0.31%, the S&P 500 lost 0.07%, Nasdaq dropped 0.27%.
Nifty technical view: “A long bear candle was formed on the daily chart which indicates a continuation of range-bound movement in the market. Nifty as per weekly chart is placed around the broader high low band of 18250-17800 levels over the last one month. The short-term trend of Nifty continues to be range bound and this choppy movement within 18200-18000 levels is likely to continue for the next 1-2 sessions. The market is waiting cues around upcoming Union Budget 2023, which is scheduled on 1 February,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch: For the bulls, 18200 would be the fresh breakout level and above the same, it could move up to 18400-18500. On the flip side, 18050 or 20-day SMA would be the sacrosanct support zone and below the same the index could slip till 17900. Bank Nifty has support at 42200 levels, while resistance is placed at 43100. “Traders are bracing up for more volatility as monthly expiry draws near Long-term investors may, with calculated risk, grow their exposure to ETFs in addition to stocks,” said Om Mehra, Equity Research Analyst, Choice Broking.
FII and DII data: Foreign institutional investors (FII) net sold shares worth Rs 760.51 crore, whereas domestic institutional investors (DII) net bought shares worth Rs 1,144.75 crore on 24 January, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for January 25, the expiry day for monthly futures & options (F&O) contracts. According to the NSE, the stocks under F&O ban are prohibited in the F&O sector because 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.
Q3 results today: Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, Cipla, Amara Raja Batteries, Arvind, Ceat, Chennai Petroleum Corporation, Dixon Technologies, DLF, Embassy Office Parks REIT, Equitas Holdings, Go Fashion, Indraprastha Gas, Indian Bank, Jyothy Labs, Olectra Greentech, Patanjali Foods, Tata Elxsi, TeamLease Services, Torrent Pharmaceuticals, and VIP Industries will report their quarterly earnings on Wednesday, 25 January.
Oil falls: Crude oil prices slipped on Tuesday on concerns about a global economic slowdown and as preliminary data indicated a bigger-than-expected build in US oil inventories. Brent futures for March delivery fell $2.06, or 2.3% to $86.13 a barrel. US crude fell $1.49, or 1.8% to $80.13 per barrel.