Indian equity markets are expected to open in the green on Tuesday as SGX Nifty hinted at a positive start for domestic benchmark indices BSE Sensex, NSE Nifty 50. Nifty Futures were up 112 pts or 0.62% on the Singapore Exchange ahead of today’s session. “Although key indices are lacking a bit of momentum, the undertone seems strongly bullish and as a result, the Nifty is now within a touching distance of the psychological mark of 18000. It’s merely a formality now, we would see it on the screen very soon. The real question is, does the market have enough legs to move beyond it to touch the record highs? In our sense, it’s happening sooner or later, said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.
5 things to know before market opening bell
Global market watch: Wall Street extended its winning streak on Monday, rallying to a sharply higher close as investors awaited crucial inflation data that could provide clues about the duration and severity of the Federal Reserve’s tightening policy. The Dow Jones Industrial Average rose 0.71%, the S&P 500 gained 1.06%, and the Nasdaq Composite added 1.27% on Monday. Meawhile, Asia-Pacific markets were higher today as investors look ahead to the U.S. inflation report for the month of August. Japan’s Nikkei 225 gained 0.26%, and the Topix index ticked 0.18% higher. In Australia, the S&P/ASX 200 rose 0.6%. South Korea’s Kospi rose 1.78% on its return to trade after a holiday Monday, and the Kosdaq jumped 1.9%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.35%.
Nifty technical view: “A small positive candle was formed on the daily chart with minor upper shadow. This market action signal follow through upmove in the market with range movement. The crucial overhead resistance of 17800 levels has been surpassed amidst a range movement, but the strength which is required for a decisive upside breakout of the key overhead resistance is absent so far. The short term trend of Nifty continues to be positive, but the lack of strength is visible above the trend line resistance,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “Nifty seems to be facing resistance at the previous high of 17992. Broader market continues to do well, while the largecaps are seeing rotational buying and profit taking; thus leading the Nifty to a slow crawl up. Nifty could continue to face resistance at 17992 while 17807 could act as a support in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities. Meanwhile, Bank Nifty has support at 40000 levels while resistance is placed at 41200, according to Om Mehra, Technical Associate., Choice Broking.
FII and DII data: Foreign institutional investors (FIIs) net-bought shares worth Rs 2,049.65 crore, whereas domestic institutional investors (DIIs) offloaded equities worth Rs 890.51 crore on Monday (September 12), according to the per provisional data available on the NSE.
Stocks under F&O ban on NSE: Indiabulls Housing Finance, Ambuja Cements, and Delta Corp are the three strock under the NSE F&O ban list for today (September 13). Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.