With no major domestic macroeconomic data announcement this week, investors would keenly track the US Fed interest rate decision and other global trends to decide its further movement.
Nifty futures tanked 134.50 points or 0.76 per cent in the early trade on Singaporean Exchange, suggesting a gap-down start for BSE Sensex and Nifty 50 for Monday. Equity benchmarks surged to their fresh lifetime peaks on Friday. During the last week, the 30-share BSE benchmark jumped 710 points or 1.21 per cent. With no major domestic macroeconomic data announcement this week, investors would keenly track the US Fed interest rate decision and other global trends to decide its further movement. Moreover, market participants would also track foreign institutional investors movement, rupee-dollar trend, brent crude, and other global cues.
Global watch: Asian stock markets were trading lower in early trade. The S&P/ASX 200 in Australia fell 1.21 per cent, while the Hang Seng index dropped 2.18 per cent. While markets in mainland China, Japan and South Korea remained closed on Monday for holidays. In overnight trade on Wall Street, US stocks ended sharply lower in a broad sell-off on Friday. The Dow Jones Industrial Average fell 166.44 points, or 0.48%, the S&P 500 lost 40.76 points, or 0.91%; and the Nasdaq Composite dropped 137.96 points, or 0.91%.
FIIs, DIIs trade activity: On Friday, foreign institutional investors (FIIs) bought shares worth Rs 1,552.59 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 1,398.55 crore on a net basis in the Indian share market.
Technical view: Analysts said that the market seemed to have started with profit booking and volatility at the new highs. “Having moved up sharply in the last few sessions, there is a possibility of consolidation or minor weakness in the coming sessions. Important support is placed at 17400 and there is a possibility of upside bounce from the lower levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.
Call, Put OI: Put Open Interest stood at 17,000 followed by 17600 levels, while maximum Call OI was seen at 18000 followed by 17800 levels. The OI has increased for 17600 PE which implies that the option writers consider 17600 levels as strong support. On the other hand, the highest increase in OI is for 18000 CE. This implies that option writers consider the 18000 level as a strong resistance level. Options data suggested a broader trading range between 17,600 and 18000 levels, Aprajita Saxena, Research Analyst, Trustline Securities, said.
Bank Nifty on charts: The trend deciding level for Bank Nifty future is 37200 if it trades and sustains above 37200 Bank Nifty may test 38345-38550 but if it trades below 37200, it may slide down to 37680-37370. :On technical front momentum indicator RSI when plotted on the daily timeframe can be seen sustaining consistently above the 65 mark which shows strong positive momentum in the short to medium term. If the long-term bullish trend remains intact Nifty bank can give a move towards 39000 and 39500 levels in the coming weeks,” Saxena added.