Indian equity market fell sharply for the second consecutive session on Wednesday with the Nifty50 falling below 18,000 level as FII selling, elevated oil prices and inflation concerns weighed on sentiment. Investors’ wealth has eroded by Rs 5,24,647.66 crore in the last two days as markets. “Going ahead, the market is likely to continue with its consolidation till the inflation fear looms. Also, major events like upcoming budget and various state elections could lead to higher volatility in coming days,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Key things to know before market opening bell
Nifty technical view: Nifty on the weekly chart has started to show weakness after an excellent upmove in the last three weeks. After the negation of bearish lower tops and bottoms pattern as per weekly chart in recent past, the market could find support at the previous upside breakout point of around 17650-17700 levels during its current downward retracement. The underlying trend of Nifty continues to be down. The short term top reversal has been confirmed at the high of 18350 and the bearish patterns as per daily timeframe chart remains intact. The next downside levels to be watched around 17700-17650 levels and any pullback rally from here could find strong resistance around 18100 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key support, resistance levels for Nifty: For the coming session, 17900 followed by 17800 are to be treated as sacrosanct supports and if it’s merely a profit booking, market should attract some buying interest around mentioned supports. On the flipside, the resistance level shifts lower to 18000 first and then at 18100, said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd.
Nifty Call, PUT OI: Maximum Call open interest was seen at 18000 strike, followed by 18300 strike, and 18500 strike, Call writing was seen at 18000 strike, followed by 18100 and 17900 strike. Maximum Put open interest was seen at 18000 strike, followed by 17500 strike and 17900 strike. Put writing was seen at 17900 strike, followed by 17800 strike and 17700 strike.
Q3 Results Today: Hindustan Unilever (HUL), Biocon, Asian Paints, Bajaj Finserv, Havells India, Persistent Systems, PNB Housing Finance, Agro Tech Foods, Bajaj Holdings & Investment, Century Textiles & Industries, Container Corporation Of India, Cyient, Datamatics Global Services, Hatsun Agro Product, Lyka Labs, Bank Of Maharashtra, Mphasis, Reliance Industrial Infrastructure, Sasken Technologies, Shoppers Stop, South Indian Bank, Vimta Labs and VST Industries are going to announce their Q3FY22 numbers today (20 January).
Global cues: The US stock markets fell heavily for the second consecutive day on Wednesday. Led by technology stocks, all three major Wall Street indices – S&P 500, Nasdaq, and Dow Jones set new lows for the year. While headline index S&P 500 fell 44.35 points, or 1%, the Dow Jones Industrial Average fell 339.82 points, or 1%. The Nasdaq also fell 166.64 points, or 1.2% yesterday. Markets in Asia were mixed on Thursday. Shanghai composite rose 0.38%, and the Shenzhen component was up 0.37%. Hong Kong’s Hang Seng index jumped 1.42%. Japan’s Nikkei 225 edged up 0.1%, while the Topix was up 0.3%. South Korea’s Kospi was trading flat.
FII and DII data: On Wednesday, Foreign institutional investors (FIIs) offloaded shares worth Rs 2,704.77 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 195.07 crore in the Indian equity market, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: A total of six stocks including BHEL, Escorts Ltd, Granules India, Indiabulls Housing Finance, Vodafone Idea, and SAIL are under the F&O ban for January 20. 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.