Indian benchmark indices BSE Sensex and NSE Nifty 50 are likely to open higher on Tuesday, hinted SGX Nifty. Nifty futures were trading 95 pts, or 0.53% higher at 18,155 on the Singapore Exchange, signaling that Dalal Street was headed for a positive start. “The buoyancy in the global markets, especially the US, combined with favourable domestic cues is helping the markets to maintain the prevailing recovery. And, we expect the Nifty to regain momentum above the 18,100 level. In line with the trend, participants should look for buying opportunities on every dip and avoid contrarian trades,” said Ajit Mishra, VP – Research, Religare Broking.
Key things to know before share market opening bell
Global market watch: US stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve’s policy meeting this week. The Dow Jones Industrial Average fell 128.85 points, or 0.39%, to 32,732.95, the S&P 500 lost 29.08 points, or 0.75%, to 3,871.98 and the Nasdaq Composite dropped 114.31 points, or 1.03%, to 10,988.15. Shares in the Asia-Pacific are set to inch higher on Tuesday ahead of Australia’s central bank decision and the results of a private survey on Chinese factory activity. The Nikkei 225 in Japan gained 0.15% while the Topix also rose 0.23%. The Kospi in South Korea rose 0.28%. In Australia, the S&P/ASX 200 rose 0.7%. MCSI’s broadest index of Asia-Pacific shares outside Japan was 0.74% higher.
Nifty technical view: Markets ended with hefty gains on Monday after a gap up opening. “Zooming into 15-minute chart, we see that Nifty opened with an upgap and then traded in a range. The index then found support at the 20 period MA on the 15 min chart and surged higher towards the closing. The short-term trend, therefore, remains up as the Nifty has moved above the previous swing high of 17919 and made higher bottoms over the last few weeks,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
“The Nifty has also closed above a downward sloping trend line that has held down the highs of 2021 and 2022. The Nifty could now attempt to test the recent intermediate high of 18096. Once these levels are crossed, the Nifty looks set to move higher towards the previous intermediate highs of 18351. The index could witness a mild correction in the very near term. It is important that the Nifty holds above the immediate supports of 17899-17723 for the uptrend to continue,” he added.
Levels to watch for: “The Nifty managed to close above 18000 levels, which can cause the upswing to accelerate, but one shouldn’t be overly hopeful. OI Data indicates, on the call side, the highest OI was witnessed at 18200 followed by 18300 strike prices while on the put side, the highest OI was at 17800 strike price. Nifty Put Call Ratio stands at 1.23. On the other hand, Bank Nifty has support at 40800 levels while resistance is placed at 42000 levels. To combat the opening with gaps, it is advised that traders and investors should employ with option strategies,” said Om Mehra, Research Associate, Choice Broking.
Q2 Results on 1 November: Sun Pharmaceutical Industries, Adani Ports and Special Economic Zone, Tech Mahindra, UPL, Punjab National Bank, FSN E-Commerce Ventures (Nykaa), Karnataka Bank, LIC Housing Finance, Chambal Fertilisers & Chemicals, Cholamandalam Investment and Finance Company, CMS Info Systems, Dhanuka Agritech, JK Tyre & Industries, Kansai Nerolac Paints, Macrotech Developers, Tata Investment Corporation, Varun Beverages, Voltas, and Whirlpool of India will be in focus ahead of September FY23 quarter earnings on November 1.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 4,178.61 crore whereas domestic institutional investors (DIIs) net offloaded equities worth Rs 1,107.10 crore on 31 October, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: Since it is the beginning of the new series, the NSE has not added any stock under its F&O ban list for 1 November. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.