The domestic indices are likely to open in the red, as hinted by the SGX Nifty on Friday. Nifty futures are trading at 17,061.5, lower by 22 points on the Singaporean exchange. On Thursday, the markets snapped a two-day gaining streak, as Nifty gave up the 17,100 level, closing lower by 0.44% at 17,076.9. Sensex closed 290 points down, at 57,925.
“Although the Fed’s decision to increase rates by 25 basis points was in line with expectations, concerns were raised by the U.S. Treasury Secretary’s statement that blanket insurance for all deposits was not being considered. The domestic market attempted to recoup its initial losses with the help of favourable U.S. futures as the Fed hinted at its plan to pause rate hikes sooner. However, the recovery was short-lived due to a sluggish start in the European market led by a 50 bps hike by the Swiss National Bank,” said Vinod Nair, Head of Research at Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
Wall Street closed higher on Thursday as market participants were reassured by U.S. Treasury Secretary Janet Yellen’s reassurances that measures will be taken to keep Americans’ deposits safe. All three major U.S. stock indexes reversed an earlier rally, turning red before clawing their way back to positive territory in the final hour as Yellen resumed her congressional testimony, according to Reuters. The Dow Jones closed up 0.2% and the S&P 500 rose 0.3%, and the Nasdaq Composite Index jumped 1%.
Stocks in Asia-Pacific traded in red, despite Wall Street’s close in the green. Japan’s Nikkei 225 lost 0.19%, and South Korea’s Kospi lost 0.6% in its first hour of trade. China’s Shanghai Composite traded down by 0.6% while Hong Kong’s Hang Seng index declined 0.25%.
Oil prices fell on Friday, extending the previous day’s losses, on worries about potential oversupply after U.S. Energy Secretary Jennifer Granholm said refilling the country’s Strategic Petroleum Reserve (SPR) may take several years. Brent crude futures slid 48 cents, or 0.6%, to $75.43 a barrel by 0039 GMT, while U.S. West Texas Intermediate crude futures dropped 52 cents, or 0.7%, to $69.44 a barrel.
Foreign institutional investors (FII) net sold shares worth Rs 995 crore, while domestic institutional investors (DII) net acquired equities worth Rs 1,668.85 crore on 23 March, according to the provisional data available on the NSE.
The National Stock Exchange has Biocon, HAL and IndiaBulls Housing Finance on its F&O ban list for 24 March. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
“A small negative candle was formed on the daily chart with long upper shadow. Technically, this pattern indicates sell on rise pattern from near the crucial overhead resistance of 17,200 levels. One may observe a lack of strength in the upside bounce of the market. Nifty seems to have reversed down from the key hurdle on Thursday, post small upside bounce. The market could find a range of around 17200-16950 levels in the next few sessions. The lower area of 16950-16900 is expected to offer support for the market during present weakness. A decisive move above 17200-17250 levels is likely to bring strength in upside bounce,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty View
“The Bank Nifty bears came back strong in the second half of the session and the index witnessed selling pressure from higher levels. The index needs to cross the level of 40,000 on a closing basis from continuing the up move. The index is likely to trade in the range of 39,000-40,000 and a break on either side will decide a trending move,” said Rupak De, Senior Technical Analyst, LKP Securities.