SGX Nifty on Monday hinted at a flat start for Indian equity markets as Nifty futures on the Singapore Exchange traded 4 pts, or 0.02% lower at 17,491. In the previous session, the BSE Sensex rallied 550 points to 58,961, while the NSE Nifty 50 jumped 175 points to settle at 17,487. “Nifty has crossed the hurdle at 17,400 after two weeks of consolidation and we now expect a gradual recovery to the 17,600+ zone. Apart from the global markets, we feel participation of key sectors on a rotational basis would be critical for a sustained up move. Amid all positivity, traders should maintain their focus on overnight risk management,” said Ajit Mishra, VP – Research, Religare Broking.
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Global market watch: Shares in the Asia-Pacific inched higher following a second day of gains in major US indices. Japan’s Nikkei 225 added 0.42% and the Topix gained 0.3%. South Korea’s Kospi ticked 0.14% higher and the Kosdaq gained 0.43%. MSCI’s broadest index of Asia-Pacific shares outside Japan was fractionally higher. Overnight in the US, strong earnings reports fueled stock gains for a second session. The Dow Jones Industrial Average added 1.12%, the S&P 500 advanced 1.14%, and the Nasdaq Composite gained 0.90%.
Nifty technical view: A reasonable positive candle was formed on the daily chart with gap up opening. “Nifty is now in an attempt of upside breakout of the crucial overhead resistance at 17425 as per the concept of change in polarity. This is positive indication and further upside from here could open sharp follow-through upside for the market ahead. The positive sequence of higher tops and bottoms is confirmed and the market is currently moving up towards the formation of new higher top of the sequence,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“Still there is no indication of any higher top reversal as of now. The short-term trend of Nifty continues to be positive. A decisive move above 17450-17500 levels is likely to bring bulls back into driver’s seat and that could pull Nifty towards the upside target of 18000 levels in the near term. Immediate support is placed at 17425,” Shetti added.
Levels to watch for: “The support for Nifty has shifted around 17280 levels while on the upside 17600 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 39500 levels while resistance at 40800 levels. Overall, the Nifty is looking strong on the charts. One can add quality stocks on dips for medium-long term investment,” said Palak Kothari, Senior technical analyst, Choice Broking.
Q2 results today: IndusInd Bank, UltraTech Cement, HDFC Asset Management Company, Nestle India, 5paisa Capital, AU Small Finance Bank, CG Power and Industrial Solutions, Havells India, Home First Finance Company India, Inox Leisure, Metro Brands, Max Financial Services, Nippon Life India Asset Management, Navin Fluorine International, Persistent Systems, Shoppers Stop, and Syngene International will announce September FY23 quarter earnings.
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Stocks under F&O ban on NSE: Delta Corp, Indiabulls Housing Finance, and India Cements are the three stocks under the NSE F&O ban list for 19 October. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.