Indian benchmark indices BSE Sensex and NSE Nifty 50 are likely to open gap down as SGX Nifty was deep in red on Tuesday morning hinting at negative start for Indian equity markets. Domestic equities on Monday opened flat but gained momentum during the session, extending the rally for the fifth consecutive day. “The positive momentum in the market is likely to continue till the peace talks don’t fail and the commodity prices continue their downward trend. While the IT sector continues to shine in the current volatile environment, there is some value buying emerging in select banking stocks. Also few commodity related counters like sugar, paper, fertilisers are likely to remain in action,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
5 things to know before today’s trade
Global markets: Shares Asia-Pacific markets were mixed on Tuesday. Hong Kong’s Hang Seng index led losses regionally, momentarily falling more than 4%. In mainland China, the Shanghai composite slipped 1.5% while the Shenzhen component shed 0.657%. South Korea’s Kospi shed 0.67%, while Japan’s Nikkei 225 climbed 0.37%, and the Topix index advanced 0.93%. Overnight on Wall Street, the S&P 500 shed 0.74%, while the tech-heavy Nasdaq Composite dropped 2.04%. The Dow Jones Industrial Average was little changed at 32,945.24.
Nifty technical view: “A long bull candle was formed on the daily chart, after a smaller range movement for short term. Technically, this indicates a strength of an upside momentum in the market. The crucial overhead resistance zone of 16800-17000 levels have been challenged, as Nifty partially filled the opening downside gap. This is a positive indication,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“A sustainable move above 17000 levels could be considered as a sharp upside breakout of important resistance zone and that could also negate the negative sequence of lower tops and bottoms as per daily chart. In such circumstances (Nifty sustaining above 17K mark), the sharp upside towards 17500 could be ensued,” Shetti added.
Nifty support resistance levels: Nifty 50 index surged for the fifth consecutive day & traded higher after a positive opening and managed to cross it’s major hurdle at 16800 levels. “At present, the index has support at 16500 levels while resistance comes at 17000 levels, crossing above the same can show 17200-17300 levels. On the other hand, Bank nifty has support at 34600 levels while resistance at 35800 levels,” said Palak Kothari, Research Associate, Choice Broking.
Stocks under F&O ban on NSE: Only one stock – Balrampur Chini Mills – is under the F&O ban on NSE for 15 March. 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.
FII, DII data: Foreign institutional investors (FIIs) continue selling in India as they have net sold shares worth Rs 176.52 crore on Monday, the lowest offloading in a single day in the last one month. However, domestic institutional investors (DIIs) have bought shares worth Rs 1,098.62 crore on 14 March, according to the provisional data available on the NSE.
