Sensex, Nifty eye gap-down start on Monday; 5 things to know before opening bell

Analysts say that on daily charts, the Nifty formed a doji like pattern after a downgap suggesting a possible halt to the fall temporarily. Image: Reuters

BSE Sensex and Nifty 50 continued to correct on Friday, ending over 2 per cent lower on weekly basis. In the previous session, BSE Sensex ended 361 points or 0.6 per cent down at 58,766, while the Nifty 50 index fell 86 points or 0.5 per cent to settle at 17,532. A host of factors such as RBI MPC, third quarter earnings for FY22 by BSE listed companies, oil prices, rupee movement and other global cues will guide the Indian share market this week.Analysts say that on daily charts, the Nifty formed a doji like pattern after a downgap suggesting a possible halt to the fall temporarily. “17355-17452 could be an important support for the Nifty while 17620 could act as a resistance. 17792 on the upside seems difficult to breach in the near term,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.

FII and DII activity: On Friday, foreign institutional investors (FIIs) lapped up shares worth Rs 131.39 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 613.08 crore on a net basis in the Indian equity market.

Levels to watch out for today: Nifty is expected to open flat to positive, up by 30 points at 17560. Nifty has resistance in 17620-17650 range and support in 17300-17350 range. As long as Nifty is trading above 17250, buy on dips with strict stop-loss can be used as a strategy. Any fall below 17250 may cause a temporary trend reversal, said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

RBI MPC this week: Amid rising global commodity prices and the need to contain inflation at home, the Reserve Bank is likely to maintain status quo on interest rates for the eighth time in row in its upcoming bi-monthly monetary policy review later in the week, according to experts.

Salaried jobs rise: Led by salaried jobs, employment increased by 8.5 million in September to 406.2 million, the highest level since March 2020. However, it still remained slightly lower than the September 2019 level of 406.7 million.

Global watch: Asian stock markets were trading mixed in early trade. In Japan, the Nikkei 225 shed 0.57% while the Topix index dipped 0.24%. Wall Street stocks surged to a higher close on Friday. The Dow Jones Industrial Average rose 482.54 points, or 1.43%, to 34,326.46; the S&P 500 gained 49.5 points, or 1.15%, at 4,357.04; and the Nasdaq Composite added 118.12 points, or 0.82%, at 14,566.70.