Nifty to extend gains for Day 10 or tumble before touching 17,900- Check 8 things to know before market opens

Nifty to extend gains for Day 10 or tumble before touching 17,900? Check 8 things to know before market opens

After a nine-day winning streak, Nifty and Sensex’s rally might be cut short on Monday, as the SGX Nifty is trading in the red in the morning session. Nifty futures on the Singaporean exchange are at the 17,783.5 level, down by 87.5 points, indicating a negative start for the domestic equity indices, BSE Sensex and NSE Nifty. On Thursday, the markets extended their gaining streak for the ninth day, as Nifty rose 0.09% to settle at 17,828 while Sensex ended 38 points higher, closing with gains at 60,431 points.

“Indian shares experienced a downturn, weighed down by IT stocks following weak quarterly earnings and a cautious outlook from the top IT firm, which flagged apprehensions over deferred spending and uncertainty in its BFSI segment. The decrease in CPI inflation to 5.66% in India, coupled with the moderation of core inflation, supports the decision of the MPC to keep policy rates on hold. While US inflation cooled to 5.0%, anxieties grew globally after the FOMC minutes hinted at a possible “mild recession” due to the impact of banking turmoil” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Asian stocks opened cautiously on Monday as the U.S. earnings season gets into full swing. Stocks in Asia-Pacific traded mixed as Japan’s Nikkei 225 was flat at 0.07% and Hong Kong’s Hang Seng index traded up, higher by 0.43%. South Korea’s Kospi lost 0.13% in its first hour of trade. China’s Shanghai Composite traded higher by 0.57% while the Shenzhen Component added 0.42%.

Crude Oil

Oil prices edged up on Monday, supported by OPEC+’s plans to cut more output, while investors eyed Chinese economic data for signs of a demand recovery by the world’s No. 2 oil consumer. Brent crude futures nudged 17 cents higher to $86.48 a barrel by 0144 GMT, while U.S. West Texas Intermediate crude was at $82.66 a barrel, up 14 cents.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth Rs 221.85 crore, while domestic institutional investors (DII) net sold equities worth Rs 273.68 crore on 13 April, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Balrampur Chini Mills and Delta Corp securities on its F&O ban list for 17 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

“A small positive candle was formed on the daily chart with a long lower shadow. Technically, this pattern indicates a buy on intraday dips opportunity on Thursday. Nifty is currently making an attempt to stage an upside breakout of the crucial overhead resistance at 17,800 levels (previous lower top of 6th March). A decisive move above this hurdle is likely to negate the bearish chart pattern of lower tops and bottoms of the last few months and that could open positive patterns like higher tops and bottoms. The overall chart pattern of Nifty continues to be positive. The next upside targets to be watched are around 18,200 levels in the coming weeks. Immediate support is at 17,700 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Bank Nifty View

“The Bank Nifty index has continued its strong upward momentum, surpassing the budget day high of 42016 with solid volume in the space. The index remains in buy mode and will likely move towards 42440-42680 levels on the upside. On the lower end, Bank Nifty has support at 41800; as long as this support is not breached, the trend remains positive,” said Rupak De, Senior Technical Analyst at LKP Securities.

AMFI Data

“The net Inflows into equity funds has continued to show a strong uptrend in March with net inflows of Rs 20,534 crore which is higher by about 30% compared to February 2023. The SIP amount also has hit an all-time high of Rs 14,276 crore in March. This reinforces our belief that domestic investors continue to have a high level of confidence in the Indian growth tory and also in mutual funds as an effective vehicle for wealth creation. From a low of about Rs 2250 crore in November, the net inflows into equity funds have been steadily increasing every month, which augers well for the future of the equity markets,” said G Pradeepkumar, CEO, Union Asset Management Company.