Sensex, Nifty may start in green; five things to know before market opens on Wednesday

Nifty futures were trading 19.50 points or 0.11 per cent up at 18,446 on Singaporean Exchange, hinting at a positive opening for Sensex and Nifty.

Trends on SGX Nifty suggested a gap-up opening for BSE Sensex and Nifty 50 on Wednesday. In the previous session, benchmark indices ended in the red after having touched fresh all-time highs in the first half of the day. Technical analysts believe investors should now wait and watch while avoiding hasty trading decisions. “We may see some consolidation in the index after the recent surge and stocks usually witness erratic swings during such phases. And, the prevailing earnings season would further add to the choppiness. We thus recommend maintaining extra caution in stock selection and risk management. On the benchmark front, Nifty has immediate support at 18,300,” Ajit Mishra, VP – Research, Religare Broking, said.

SGX Nifty in green: Nifty futures were trading 19.50 points or 0.11 per cent up at 18,446 on Singaporean Exchange, hinting at a positive opening for Sensex and Nifty.

Q2 results today: BSE-listed companies such as Jubilant FoodWorks, Havells India, L&T Finance Holdings, Angel Broking, Arihant Superstructures, Deep Polymers, Hathway Cable & Datacom, Just Dial, Menon Bearings, Moschip Technologies, Reliance Industrial Infrastructure, Rane (Madras), Shoppers Stop, Snowman Logistics, Supreme Petrochem, Suryalakshmi Cotton Mills, Syngene International, TajGVK Hotels & Resorts, Tata Communications, Tata Steel Long Products, Tejas Networks, and TT Ltd, were scheduled to announce their second quarter earnings today.

Global watch: Asian stock markets were trading mixed in early trade on Wednesday. Japan’s Nikkei 225 climbed 0.6% while the Topix index edged 0.55% higher. South Korea’s Kospi shed 0.13%. In overnight trade on Wall Street, US stocks ended higher. The Dow Jones Industrial Average rose 198.7 points, or 0.56%, to 35,457.31, the S&P 500 gained 33.17 points, or 0.74%, to 4,519.63 and the Nasdaq Composite added 107.28 points, or 0.71%, to 15,129.09.

FII and DII data: On Tuesday, foreign institutional investors (FIIs) sold shares worth Rs 505.79 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 2,578.22 crore on a net basis in the Indian stock market.

Nifty support, resistance: “The continuous upmove of the last 7 sessions has been broken and the market has shifted into a profit booking mode. The overall negative chart pattern indicate more weakness in the next 1-2 sessions. The next lower levels to be watched are 18200-18150 (10day EMA). Any upmove from here could find resistance around 18470-18500 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.