Nifty to extend gains or fall under 17,750- Check 8 key things to know before share market opens on 26 April

Nifty to extend gains or fall under 17,750? Check 8 key things to know before share market opens on 26 April

The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the red, as Nifty futures traded 40 points lower at 17,747 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex extended gains on Tuesday and ended the session in green. The NSE Nifty 50 rose 0.15% to 17,769 and BSE Sensex climbed 0.12% to 60,130.

“The domestic market succeeded in holding the gains, though multiple attempts were made by bears to reverse the trend considering the weak global market. Investors are highly nervous as they await the release of US GDP and PCE inflation data, which will guide the upcoming Fed action. The Fed is expected to raise their rates by another 25 bps in its announcement on 3rd May,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region traded largely in the red on Tuesday. South Korea’s Kospi fell 1.21% in trade on Tuesday. China’s indices traded flat as Shanghai Composite fell 0.02%, while the Shenzhen Component was lower by 0.01%. Hong Kong’s Hang Seng index gained 0.21%, while Japan’s Nikkei 225 fell 0.38%.

Crude Oil

Oil prices rose in early Asian trade on Wednesday after a U.S. trade group reported a significant draw in crude oil stocks ahead of the government’s data release. Brent crude rose by 16 cents, or 0.2%, to $80.93 a barrel by 0006 GMT. U.S. West Texas Intermediate crude rose 25 cents, or 0.3%, to $77.32 a barrel, according to Reuters. 

FII/DII Data

Foreign institutional investors (FII) net sold shares worth Rs 407.35 crore, while domestic institutional investors (DII) net purchased equities worth Rs 563.61 crore on 25 April, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has ZEEL securities on its F&O ban list for 26 April. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Technical View

“Though, Nifty moved up decently in the last two sessions, the chart pattern still shows dicey for the market ahead. Unless the swing highs of 17,865 is taken out decisively on the upside, the sharp upside breakout can’t be expected and the market could even shift into consolidation or weakness.mThe short term trend of Nifty is positive with range bound movement. Any failure to sustain above the crucial hurdle of 17,865 levels could open further consolidation or weakness in the short term. Immediate support is around 17,650-17,600 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Bank Nifty View

“Bank Nifty bulls continued to their stronghold and the index climbed up higher. The index remains in a strong buy mode with support at 41,500-41,400 levels which will act as a cushion for the bulls. The upside resistance is visible at 43,000 where the highest open interest is built up on the call side and once surpassed will see further short covering,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.

Currency Outlook

“USDINR spot closed flat at 81.92 due to a lack of fresh triggers in the market. With volatility coming off across asset classes, including USDINR, we could be in for high volatility next week, post-Fed meeting. USDINR can operate within a range of 81.60 and 82.30 on spot,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives, Kotak Securities.