Nifty to rally above 18900 or profit-booking to continue- 7 things to know before share market opening bell

Nifty to rally above 18900 or profit-booking to continue? 7 things to know before share market opening bell

Indian benchmark indices are likely to open lower amid weak global cues. SGX Nifty hinted at a negative start for domestic share market as Nifty futures traded 33 pts lower at 18719 level on the Singapore Exchange. In the previous session, the BSE Sensex declined 208 points to 62,626, while NSE Nifty 50 fell 58 points to 18,643. “Markets are digesting the recent gains and it may take a few more sessions to resume the trend. Meanwhile, traders should focus on managing positions and gradually adding quality names from across sectors. The decline in the auto and IT majors is offering a good opportunity to accumulate while pharma is not showing any sign of a reversal yet,” said Ajit Mishra, VP – Technical Research, Religare Broking.Key things to know before share market opening bell

Global market watch: Shares in the Asia-Pacific region slipped on Wednesday, tracking US market losses. Japan’s Nikkei 225 was down 0.69% in early trade and the Topix also fell 0.17%. South Korea’s Kospi shed 0.47%, and the Kosdaq was 0.62% lower. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.28%. Overnight in the US, all three major Wall Street indices tumbled, building on losses from the previous session. The S&P 500 shed 1.44%, while the Nasdaq Composite sank 2%, and the Dow Jones Industrial Average dropped 1.03%.

Nifty technical view: A small positive candle was formed on the daily chart at the lows. “After the formation of bullish hammer type candle pattern on Monday, Nifty shifted into a consolidation movement at the lows on Tuesday and closed above the low of hammer at 18591 levels. This is a positive indication and it raises hopes for an upside bounce soon in the market. Though, the market declined in the last three sessions, sharp weakness or any significant negative reversal pattern is absent. The Nifty remains in a consolidation movement with gradual weakness. The market is expected to witness upside bounce from near the support of 18550 levels in the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Key levels to watch for: “Once Nifty sustains 18750 levels, we can expect a rally till 18900 levels. Volume profile indicates that index may find support around 18450-18500 zone. Coming to the OI Data, on the call side, the highest OI observed at 18800, followed by 18900 strike price while on the put side, the highest OI was at 18500, followed by 18400 strike price. On the other hand, Bank Nifty has support at 42700-42500 zone while resistance is placed at 43600. The long-term investor may appear to have slightly changed in its investment approach as selective mid-cap and small-cap stocks currently look appealing,” said Om Mehra, Technical Associate, Choice Broking.

RBI MPC meet: All eyes are on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting which concludes today. Analysts expect that the RBI MPC is set to announce further repo rate hikes amid elevated inflation, geopolitical tensions and fears of a global recession, on Wednesday, 7 December, once the three-day review session has concluded. The consensus among most experts states that the repo rate will be hiked by 25-35 basis points; the repo rate currently stands at 5.9%. The RBI Governor, Shaktikanta Das, will announce the committee’s policy decisions which will be closely watched by the market for further cues.

FII and DII data: Foreign institutional investors (FIIs) have net-sold shares worth Rs 635.35 crore, while domestic institutional investors (DIIs) net-offloaded shares worth Rs 558.67 crore on 6 December, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: Punjab National Bank, GNFC, and Indiabulls Housing Finance are the three stocks under NSE’s F&O ban list for 7 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

Also Read: Sensex, Nifty end in red, IT and Metal laggards amid weak global market; investors eye RBI for further cues

Fitch retains India’s FY23 GDP growth forecast: Fitch Ratings on Tuesday retained India’s economic growth forecast at 7% for the current fiscal, saying India could be one of the fastest-growing emerging markets this year. It, however, cut the projections for the next two financial years, stating that even though the country is shielded to some extent from global economic shocks but is not impervious to global developments. “India is expected to record one of the fastest growth rates among emerging markets in our Fitch20 coverage this year (FY23),” it said.