Indian equity markets may witness flat to gap-up start as ahead of Monday’s trading session, SGX Nifty was up in the green, signalling some positive momentum for domestic markets. “While markets have seen a pullback – volatility is expected to remain high over the next few days. Market will be keeping a close watch on the ongoing Russia Ukraine conflict over the weekend for any further cues. For the near term, Thursday’s low of 16200 may act as a strong support. While traders need to remain cautious of sharp volatility, investors can use the current dip to gradually add quality blue chip companies in their portfolios,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Key things to know before today’s trade
Global cues: Global cues are largely positive after Wall Street indices closed the previous session in green. Among Asian peers, Japan’s Nikkei shed 0.28%, while the Topix was almost flat. The Shanghai composite fell 0.54% and the Shenzhen component lost 0.76%. Hong Kong’s Hang Seng index dropped 0.87%. Meanwhile in South Korea, the Kospi erased losses to rise 0.14%, and the Kosdaq advanced 0.49%. Over in the US, Wall Street rebounded on Friday as Wall Street’s three main indices closed 1.6-2.5 per cent higher.
Nifty Technical take: A reasonable bull candle was formed on the daily chart, which indicates a sharp comeback of bulls from the lows. This pattern has partially erased the loss made on Thursday. After a decisive downside breakout of important support like uptrend line (connected rising swing lows) and 200 day EMA around 16700-16800 levels, the market bounced back smartly in the subsequent session and is now placed at the previous breakout point. The sharp comeback of market on Friday could be a cheering factor for bulls to make a comeback, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty support, resistance levels to watch out for: While the developments on the Russia Ukraine front will keep influencing the directions of the market, resumption of supply disruptions and commodity inflation will hurt a lot of economies at a time when they were starting to recover post Omicron threat. On rises, Nifty could face resistance from the 16837-16900 band, while 16410 could offer support in the next few days, said Deepak Jasani, Head of Retail Research, HDFC Securities.
FII and DII data: Foreign institutional investors (FIIs) net sold Rs 4,470.70 crore worth of shares on Friday (25 February). However, domestic institutional investors (DIIs) made net purchases of Rs 4,318.2 crore, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: Since it is the beginning of March series, there are no stocks under the F&O ban for February 28. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
CALL, PUT OI data: Maximum call open interest is accumulated at 17000 strike with 18.74 lakh contracts. This is followed by 18000 strike, with 18.56 lakh contracts, and 17500 strike, with 16.25 lakh contracts. Maximum Put open interest was seen at 16500 strike with 50.22 lakh contracts, followed by 16000 strike, which holds 42.02 lakh contracts, and 15500 strike, with 34.80 lakh contracts.
