Will bears drag Nifty towards 17400 amid weak global cues? 5 things to know before share market opening bell

Domestic benchmark indices BSE Sensex, and NSE Nifty 50 are expected to open lower amid weak global cues. SGX Nifty was in red ahead of the session, hinting at a negative start for Indian equity markets. “All eyes will be on the RBI Monetary Policy outcome slated to be released in October. We suspect RBI to raise interest rates by another 50 basis points to combat the ever-increasing inflation. Technically speaking, the biggest support to watch out for will be 17429 and below the same, Nifty could simply drift to 17161 mark. The index faces hurdles at 17921 and then at 18115 mark, said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.

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5 things to know before share market opening bell

Global market watch: Global cues were weak as all three major Wall Street indexes ended lower on Thursday, falling for a third straight session, and Asia-Pacific shares slipped in morning trade as investors continue to weigh the Federal Reserve’s aggressive stance. The Dow Jones fell 0.35%, the S&P 500 lost 0.84%, and the Nasdaq dropped 1.37%. Meanwhile, In Australia, the S&P/ASX 200 fell 1.16%, South Korea’s Kospi dipped 0.68%, and Japan markets closed for a holiday.

Nifty technical view: A small positive candle was formed on the daily chart at the lows, with upper and lower shadow. “Technically, this pattern indicates a formation of high wave type candle pattern. Normally, such high wave pattern formation after a reasonable upmoves or declines more often acts as a reversal pattern, post confirmation. Hence, there is a possibility of an upside bounce in the short term. The candle pattern of the last three sessions signal a gradual weakness with volatility,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

“This could be a sign of relief for the bulls after a display of sharp downside momentum of 15th and 16th September. The short term trend of the Nifty continues to be choppy. The formation of candle pattern at the supports on Thursday and the overall chart pattern signals a possibility of an upside bounce in the short term,” he added.

Nifty, Bank Nifty levels to watch for: The support for Nifty has shifted around 17500 levels while on the upside, 17800 may act as an immediate hurdle. Nifty breaching below 17500 levels will open the gate for 17380-17200 levels. On the other hand, Bank Nifty has support at 40000 levels while resistance at 41500 levels. Overall, the Nifty is looking volatile for an upcoming session, according to Palak Kothari, Senior Technical Analyst, Choice Broking.

Also Read: Tata Steel, SpiceJet, Future Enterprises, Hero MotoCorp, Cipla stocks in focus on 23 September

Stocks under F&O ban on NSE: Ambuja Cements, Can Fin Homes, Delta Corp, Punjab National Bank, and RBL Bank are the five stocks on the NSE F&O ban list for 23 September. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

FII and DII data: Foreign institutional investors (FIIs) net sold shares worth Rs 2,509.55 crore, while domestic institutional investors (DIIs) bought equities worth Rs 263.07 crore on Thursday (22 September), according to the per provisional data available on the NSE website.