Nifty short-term trend positive; Q2 results, stocks under F&O ban, key things to know before market opens

Nifty short-term trend positive; Q2 results, stocks under F&O ban, key things to know before market opens

Indian benchmark indices BSE Sensex and NSE Nifty 50 are likely to open flat, hinted SGX Nifty. Nifty futures traded 0.07% higher at 17,239.5 on the Singapore Exchange, signaling that Dalal Street was headed for a muted start. “Markets are showing tremendous resilience amid the weak global environment however traders are facing tough times due to intermediate volatility. And, now with the beginning of the earnings season, we expect the choppiness to remain high. On the index front, Nifty can extend the rebound if it manages to reclaim 17,400 else consolidation will continue. Meanwhile, we feel participants should maintain their focus more on risk management and limit the leveraged positions,” said Ajit Mishra, VP – Research, Religare Broking.

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Global market watch: Shares in the Asia-Pacific were mixed on Tuesday as investors weighed the impact of new U.S. rules on chipmaker TSMC. Japan’s Nikkei 225 fell around 2%, South Korea’s Kospi fell 2.16%. Hong Kong’s Hang Seng index fell 0.91%, while the Shanghai Composite and Shenzhen Component in mainland China were little changed. Overnight on Wall Street, the Nasdaq Composite closed at its lowest since July 2020, down 1.04%, dragged lower by a slump in semiconductor stocks. The S&P 500 also slipped 0.75%, while the Dow Jones Industrial Average shed 0.32%.

Nifty technical view: A long bull candle was formed on the daily chart, after opening lower. “Technically, this pattern indicates a high volatility and emergence of buying interest from the lows. This is positive indication and one may expect upside bounce in the market in short term. The present swing low of 17064 could be considered as a new higher bottom of smaller positive sequence. This could result in Nifty revisiting the crucial overhead resistance of around 17450 levels, as per the concept of change in polarity. This pattern could eventually result in Nifty witnessing a decisive upside breakout of the hurdle in the near term. The short term trend of Nifty is weak with high volatility,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: Nifty is holding 200 DMA and would be acting as strong support for next few days. “The overall structure shows that the index is likely to witness consolidation in the range of 17000-17500 in the coming sessions. A decisive upside breakout of the hurdle of 17520 is likely to gear up Nifty towards resistance of 17700-17750 levels. Nifty IT and Banking sectors might muscle up to support the index in coming days. On the other hand, Bank Nifty has support at 38200 levels while resistance is placed at 39800. As we step towards the new earnings season, the prime focus of the market will turn towards quarterly numbers,” said Om Mehra, Technical Associate, Choice Broking.

Also Read: TCS, India Cements, Infosys, IDBI Bank, Paytm, Rategain Travel, Adani Group stocks in focus

Stocks under F&O ban on NSE: The National Stock Exchange has added Indiabulls Housing Finance, and India Cements under its F&O ban list for 11 October. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.