SGX Nifty signaled a timid opening for domestic stock markets as Nifty futures traded lower around the 17,802.50 level on the Singapore Stock Exchange. Asian markets are trading lower, following weak US markets after the Fed signaled it may hike rates sooner than expected.
The bulls continued to dominate Dalal Street on Wednesday as Sensex recovered 60,000 and Nifty again hit 17,900. While Sensex closed 367 points or 0.61% higher at 60,223 levels, the Nifty 50 index ended the session with gains of 120 points or 0.7% to 17,925. The larger market ended on a mixed note with Nifty midcap 100 up 0.2% and Nifty Smallcap 100 down 0.3% . “While the market trend could be volatile in the short term due to the potential risk of the Omicron variant, the upcoming budget and fragile global indices, in the long term strong earnings production as well as positive macroeconomic data would be the key. key to stimulating the markets. up, ”said Siddhartha Khemka, Retail Research Manager, Motilal Oswal Financial Services Ltd.
10 things to know before the market opening bell
Technical view
The bullish momentum continued in the market for the third consecutive session on Wednesday and Nifty closed the day with nice gains of around 120 points. After opening on a slightly positive note, the market moved to a sustained rise in the midst of a range move. Intraday lows were absorbed and the market closed the day near highs. A reasonable long bullish candle has formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a continuation of the uptrend in the market and the formation of an upper and lower shadow signal signaling the emergence of volatility at the highs. At the same time, the formation of the lower shadow of the bullish candle from the past two sessions indicates a buy on intraday lows in the market, said Nagaraj Shetti, technical research analyst, HDFC Securities.
However, after rising sharply over the past four sessions there is a possibility of a consolidation or slight downward correction from the highs. The overall scale of the market seems to have grown tired on Wednesday after a strong rally in recent sessions. The major stock indexes have started to consolidate at higher levels. Reversing the downtrend recently could mean a sharp uptrend reversal and any decline from there could be a buying opportunity. The market continued its bullish momentum on Wednesday, but the pace of the market appears to have slowed down and volatility has started to show at higher levels. There is a possibility of a consolidation move or minor weakness near the 18K mark over the next 1-2 sessions, before showing further upward movement after the lows, he added.
Global markets:
US stocks fell on Wednesday as the tech-rich Nasdaq plunged more than 3%, its largest single-day percentage decline since February 2021. The drop comes after the minutes of the Federal Reserve meeting US has signaled that the central bank may raise interest rates sooner than expected. The S&P 500 Index also fell more than 1%, its biggest daily percentage drop since November 26. The Dow Jones index, which hit an all-time high earlier today, also reversed course to finish lower by more than 1%.
Stocks in Asia fell on Thursday after losses in US markets overnight. Japan’s Nikkei 225 slipped 1.56%, causing losses among major Asian markets, while the Topix index also fell 1.02%. Hong Kong’s Hang Seng Index plunged 0.17%. The Shanghai composite fell 0.34%, while the Shenzhen component slipped 0.577%. South Korea’s Kospi also lost 0.55%. The MSCI’s largest Asia-Pacific stock index outside of Japan was trading down 0.6%.
Key support, resistance level for Nifty:
Nifty rose for the fourth straight session on Wednesday. However, the expected bearish ratio is now only slightly above 1: 1, suggesting the likelihood that Nifty will start correcting under large cap profit taking soon. 17945-18023 could be near-term resistance while 17827 could be support, according to Deepak Jasani, head of retail research, HDFC Securities.
Smart bank:
Nifty Bank climbed 855.75 points or 2.32% to close at 37,695.90 on January 5. Bank nifty has support at 36,800 levels while resistance is at 38,000 levels.
FII and DII data
On Wednesday, foreign institutional investors (FII) bought net shares worth Rs 336.8 crore, while domestic institutional investors (DII) bought net shares worth Rs 1,271.9 crore on the Indian stock market, according to provisional data available on the NSE.
Call option data
The maximum open interest in the appeal was found at 18,000 strikes with 19.79 lakh contracts, followed by 17,500 strikes (15.48 lakh contracts) and 18,500 strikes (12.03 lakh contracts). The call writing was observed at 18,700 strike, which accumulated 1.2 lakh contracts, followed by 17,900 strike (1.14 lakh contracts) and 18,500 strike (94,200 contracts).
Put option data
The maximum open interest of the Put was observed at 17,000 strikes which hold 34.27 lakh contracts, followed by 17,500 strikes (27.52 lakh contracts) and 17,200 strikes (16.98 lakh contracts). Put writing was seen at 17,800 strike, which added 3.03 lakh contracts, followed by 18,000 strike, (2.87 lakh contracts) and 17,900 strike (2.66 lakh contracts).
Stocks under F&O ban on NSE
As this is the start of the January series, there is not a single stock under the F&O ban for Thursday (January 6). Securities subject to the blackout period in the M&O segment include companies in which the security has exceeded 95% of the market-wide position limit.
Analyst / investor meeting
Shree Renuka Sugars: Officials to attend investor meeting
Best Agrolife: Officials to meet analysts and investors
Volatility gauge
NSE’s India VIX index, which rates volatility expectations, jumped 6.9% to 17.2. This is the biggest jump since December 20.
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.
