Domestic equity market is expected to open on a positive note as trends in the SGX Nifty indicated a firm opening for NSE Nifty 50, BSE Sensex, with a gain of 131.50 pts. “While the undertone of the market remained volatile, a strong relief rally after the recent slump helped benchmark indices to rebound on Monday. While European markets and most of the Asian pack continued their downward spiral, the underperformance of the Indian markets last week prompted investors to buy the beaten-down stocks. Despite the recovery, markets may gyrate sharply intra-day amid global uncertainty,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
5 things to know before share market opening bell
Global market watch: Wall Street’s main indices ended a volatile session higher on Monday, as investors turned their attention to this week’s US Fed meeting and how aggressively the central bank will hike interest rates. The Dow Jones Industrial Average rose 0.64%, the S&P 500 gained 0.69%, to 3,899.89 and the Nasdaq Composite added 0.76%. Shares in the Asia-Pacific rose as Japan’s inflation accelerated and China kept its loan prime rate on hold. Hong Kong’s Hang Seng index gained 0.91%. The Shanghai Composite in mainland China rose 0.51% and the Shenzhen Component advanced 0.58%. In Australia, the S&P/ASX 200 advanced around 1%. Japan’s Nikkei 225 and the Topix gained. The Kospi in South Korea added 0.37%, while the Kosdaq was 1.04% higher. MSCI’s broadest index of Asia-Pacific shares gained 0.71%.
Nifty technical view: A small positive candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicates minor upside bounce in the market. The Nifty is currently placed within a broader range of 18000-17500 levels and it was seen showing minor upside bounce from the lower range. Hence, any sustainable upside bounce from here could encounter hurdles around 17750, 17860 and 18050 levels. The short term trend of Nifty continues to be negative. Monday’s upside bounce could be a cheering factor for the bulls to make a comeback. Further sustainable upmove from here could pull Nifty towards 18K mark again, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: Nifty managed to close above the upward sloping trend line adjoining the daily lows of 20 June and 1 July 2022. Resistance for the Nifty are seen at 17760 and 17826, which happens to be 50% and 61.8% retracement of the entire fall seen from 18088 (recent swing high made on 13 Sep 2022) and Monday’s low of 17429. Below 17429, Nifty is expected to enter short term down trend. On the higher side, 18100 seems to be have become ceiling for the short term,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 312.31 crore, whereas domestic institutional investors (DIIs) net offloaded shares worth Rs 94.68 crore on Monday, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: Delta Corp, Escorts, Indiabulls Housing Finance, India Cements, PVR, and RBL Bank are the six stocks in the NSE F&O ban list for September 20. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.