BSE Sensex and Nifty 50 were staring at a weak start on Thursday, a day of weekly F&O expiry, as suggested by early trends on SGX Nifty. Nifty futures were ruling 147 points or 0.9 per cent down at 16020.50 on Singaporean Exchange. In the previous session, S&P BSE Sensex shed 276 points or 0.51% to close at 54088 while NSE Nifty 50 index fell 72.95 points to close 0.45% lower at 16,167. Analysts say that the changing macro backdrop with heightened worries on rising rate and liquidity tightening is impacting the markets. Meanwhile, the earnings season continues to remain healthy, notwithstanding the challenges on multiple fronts. “The weakness in the market is likely to persist till the concerns subsides,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.
Key things to watch before market opens
LIC IPO share allotment today: Life Insurance Corporation of India (LIC) IPO share allotment will be finalised on Thursday, 12 May, after the Rs 21,000-cr public offer received 2.95 times subscription. LIC shares were offered to investors through the IPO in a fixed price band of Rs 902-949 per equity share.
Nifty 50 outlook: The short term trend of Nifty continues to be negative, said an analyst. “Wednesday’s sharp upside recovery could some bring hopes for bulls to make a comeback. But, the recent display of lack of strength to sustain the highs could mean a presence of strong resistance around 16250-16300 levels for another round of sell on rise opportunity. Immediate support is placed at 16K levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
Nifty support, resistance: Nifty Put options OI distribution shows that 16,000 has highest OI concentration followed by 16,100; and 15,900 which may act as support for current expiry and on the Call front 16,500 followed by 16,400; and 16,300 witnessed significant OI concentration and may act as resistance for current expiry, Rajesh Palviya, Vice President – Research ( Head Technical & Derivatives)
Axis Securities, said.
Stock under F&O ban: Indiabulls Housing Finance stocks were under the F&O ban for 12 May 2022. If the open interest of any stock crosses 95% of the MWPL (market-wide positions limits), all F&O contracts of that stock enter a ban period.
Q4 results today: BSE-listed companies such as L&T, Tata Motors, RBL Bank, Apollo Tyres will be in focus ahead of Q4 earnings. Larsen & Toubro, Tata Motors, RBL Bank, Siemens, Aditya Birla Capital, Anupam Rasayan India, Apollo Tyres, Coforge, Greaves Cotton, Gujarat State Petronet, Honeywell Automation India, Poonawalla Fincorp, Ujjivan Small Finance Bank, Windlas Biotech, Avanti Feeds, Brigade Enterprises, CreditAccess Grameen, Genus Power Infrastructures, HP Adhesives, ICRA, Jammu & Kashmir Bank, JMC Projects, Lumax Auto Technologies, Matrimony.com, Mindspace Business Parks REIT, South Indian Bank and Spencers Retail will release quarterly earnings on 12 May.
Global market set up: Asian stock markets were trading in red in early trade on Thursday following overnight losses on Wall Street. Japan’s Nikkei 225 fell 1.57, while the Topix index shed 1%. On Wall Street, the tech-heavy Nasdaq Composite fell 3.18% while the broader S&P 500 shed 1.65%. The Dow Jones Industrial Average declined 326.63 points, or 1.02%, to 31,834.11.
