Will bulls stage a comeback to pull Nifty above 17750? 5 key things to know before share market opening bell
Indian equity markets are likely to open in the green on Thursday, weekly F&O expiry day. Early trends on SGX Nifty hinted at a positive start for benchmark indices BSE Sensex and NSE Nifty 50 as Nifty futures traded 72 points, or 0.41% higher at 17,687 on the Singapore Exchange. “Markets traded lackluster in a narrow range and ended marginally higher amid muted cues. We expect volatility to remain high due to the scheduled derivatives expiry of August month contracts. Besides, the caution ahead of the Jackson Hole symposium will continue to weigh on sentiment. Amid all, we recommend continuing with a stock-specific approach and focusing more on overnight risk management,” said Ajit Mishra, VP – Research, Religare Broking.
5 things to know before share market opening bell
Global markets: Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the U.S. Federal Reserve’s Jackson Hole conference this week. The S&P 500 climbed 0.29% to end the session at 4,140.77 points. The Nasdaq gained 0.41% to 12,431.53 points, while Dow Jones Industrial Average rose 0.18% to 32,969.23 points. Meanwhile, stocks in Asia edged up on Thursday amid China’s pledge of more steps to shore up its economy and as traders await a key speech by Fed Chair Jerome Powell about the policy outlook. Equities in Japan, South Korea and Australia made modest progress, while trading in Hong Kong will be delayed due to a storm.
Nifty technical view: “A small positive candle was formed on the daily chart, that placed beside the long positive candle of previous session. Technically, this pattern indicate a range bound movement in the market after a pullback rally from the lower supports. This also reflects a lack of selling interest in the last couple of sessions after a sharp reversal on the downside on 19 and 22 August. The Nifty placed at the 23.6% fibonacci support as well as 20day EMA around 17340 levels and the positive chart pattern like higher tops and bottoms is still intact. Hence, we expect further upside in the coming session,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“However, if the short covering doesn’t emerge in the next 1-2 sessions, the market could face another round of selling pressure. The market is in an attempt to comeback from the lows and further sustainable upmove from here could bring bulls into a driver’s seat. Immediate resistance to be watched at 17650 and a sustainable move above this area is expected to pull Nifty towards another hurdle of 17850 levels in the short term,” he added.
Levels to watch out for: “For traders, 17500 would be the sacrosanct support zone and above which, the index could rally till 17700-17750. On the flip side, the bullish sentiment could change if the index trades below 17500 and below the same the index could retest 17400-17350 level,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 23.19 crore, while domestic institutional investors (DIIs) offloaded equities worth Rs 322.34 crore on Wednesday, according to the provisional data available on the NSE.
Also Read: US stocks rise marginally as traders hold back on big bets before Powell’s speech; crude prices rise
Stocks under F&O ban on NSE: The National Stock Exchange (NSE) has added RBL Bank to its F&O ban list for August 25 (Thursday). Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.
