SGX Nifty hinted at a flat to positive start for Indian benchmark indices with a gain of 0.3%. In the previous session, BSE Sensex plunged 844 pts or 1.46% to 57,147, while NSE Nifty 50 fell 257 pts or 1.5% to settle below 17000. “There is pessimism in the markets as weak global economic outlook along with the pressing geopolitical tension and the dangling rate hike worries has given investors the ammunition to exit equities at will. Also, the US FOMC minutes outcome is already making investors nervous on concerns that the Fed could be going more rate hikes to keep a leash on rising inflation menace,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
5 things to know before share market opening bell
Global market watch: Asia-Pacific markets were mixed on Wednesday amid concerns over the global economy and ahead of the Bank of Korea’s rate decision. Japan’s Nikkei 225 fell 0.2% while the Topix lost 0.15%. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed. South Korea’s Kospi shed 0.23% and the Kosdaq fell 0.33%. Overnight on Wall Street, the S&P 500 shed 0.65% to close at 3,588.84 after hitting a multiyear low during the session. The Nasdaq Composite dropped 1.10% to 10,426.19, its lowest close since July 2020. The Dow Jones Industrial Average ticked up 36.31 points, or 0.12%, to close at 29,239.19.
Nifty technical view: A long negative candle was formed on the daily chart, that has engulfed the long bull candle of previous session on the downside. “This chart pattern signal a sharp rebound of the recent upside bounce on the downside. After the formation of lower top at 17428-6th Oct, the Nifty is expected to slide down to the recent lows in the coming sessions. The short term trend of Nifty remains weak and the downside momentum has started to pick up from the lower highs. One may expect Nifty to slide down to the important support zone of around 16800-16700 levels in the next few sessions, before showing another round of upside bounce from the lows,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “The support for Nifty has shifted around 16800 levels, while on the upside, 17250 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38200 levels while resistance at 39500 levels. Overall, Nifty can test the support level breaching below the same can show more downside rally,” said Palak Kothari, Senior Technical Analyst, Choice Broking.
Q2 results today: Wipro, HCL Technologies, Sterling and Wilson Renewable Energy, 7NR Retail, Artson Engineering, Mangalam Industrial Finance, Mega Nirman and Industries, National Standard (India), Nxtdigital, Sanathnagar Enterprises, Standard Capital Markets, and Yash Chemex will announce their quarterly earnings on Wednesday.
Stocks under F&O ban on NSE: The National Stock Exchange has added Delta Corp, Indiabulls Housing Finance, and India Cements stocks to its F&O ban list for 12 October. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.