Indian equity markets may open on a tepid note on Thursday, weekly F&O expiry day. SGX Nifty was in red ahead of the session, signalling a flat to negative start for domestic benchmark indices. “Markets remained closed on Wednesday on account of Ganesh Chaturthi. Investors would look for cues from India Q1FY23 GDP which came yesterday, and manufacturing PMI data due on Thursday,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. In previous session, the 30-shareBSE Sensex advanced 1,564.45 to end at 59,537.09, while its broader peer, Nifty50, ended the session comfortably above the 17,750 mark.
5 things to know before market opening bell
Global watch: US stocks ended the month of August with their fourth straight daily decline on Wednesday, cementing the weakest August performance in seven years as worries about aggressive interest rate hikes from the Federal Reserve persist. The Dow Jones Industrial Average fell 0.88%; the S&P 500 lost 0.78%; and the Nasdaq Composite dropped 0.56%. Meanwhile, Asian stocks fell in early trade on Thursday as a hawkish drumbeat from central banks reverberated across markets, supporting the dollar and pushing up bond yields. Shares were in the red in Japan, South Korea and Australia, while equity futures contracts on the S&P 500 and tech-heavy Nasdaq 100 also slid, with the latter shedding 1%.
What technical charts say: “A long bull candle was formed on the daily chart that has engulfed previous few sessions range movement in one session. Such a long bull candle formation after a down trend of few weeks signal a possible completion of recent down leg and that could resume another round of uptrend in the near term. Nifty has regained most of its lost ground and is now placed near the important resistance of down trend line around 17850-17900 levels. After a failed upside breakout of this hurdle during mid part of Aug, the market is now preparing for a decisive upside breakout of that trend line hurdle,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“The formation of long bull candle of Tuesday could be an early signal of possible sharp upside breakout. Nifty seems to have reversed the recent down trend sharply on the upside. Now, the bulls are ready to show big bang upside breakout of the resistance of around 16900 levels by this week end or by next week,” he added.
Levels to watch for: “Nifty has nullified the bearish signals from the downgap created on the previous day and has filled that downgap. “It has closed at the highest ever on monthly charts. It will now face resistance at the 17,965-17,992 band while the 17,522-17,623 band could offer support,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 4,165.86 crore, while domestic institutional investors (DIIs) net offloaded equities worth Rs 656.72 crore on Tuesday (August 30), according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock to the F&O ban list for September 1. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.