Nifty to snap losing streak or fall below 16,900- 7 things to know before share market opening bell

Nifty to snap losing streak or fall below 16,900? 7 things to know before share market opening bell

Indian benchmark indices are likely to snap their five day losing streak to open in the green, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading higher, up by more than 30 points, at the 17,011 level. On Wednesday, markets extended losses for a fifth session, pulled down by negative global cues and the Credit Suisse fall. At close, Nifty was down 71 points, below the 17,000 level while Sensex slid 0.59% to settle at 57,555.

“This is the fifth consecutive day of selling in Indian markets, which has been exacerbated by Credit Suisse’s massive drop, indicating the start of a bear market. Global cues have also been unfavourable to the market, adding to the downward pressure on Indian equities. The market is likely to remain under pressure in the coming days, with 16,800 being the next significant support level for the Nifty index,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.

Treasury Yields

The yield on benchmark 10-year Treasury notes fell to 3.4623% from a previous close of 3.636%. The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 3.8916% compared with a previous close of 4.225%, according to Reuters.

Asian Markets

Stocks in Asia-Pacific traded in red on Thursday. Japan’s Nikkei 225 traded lower by 1.13%, and South Korea’s Kospi traded flat at 0.027% in the negative territory in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded lower by 0.58% and 0.90%, respectively. Hong Kong’s Hang Seng index added 1.95%.

Crude Oil

In commodities, both crude benchmarks hit their lowest since December 2021 and have fallen for three straight days. Brent crude, the global benchmark, settled down $3.76, or 4.9%, at $73.69 a barrel. U.S. West Texas Intermediate crude (WTI) was down $3.72, or 5.2%, at $67.61, breaking through technical levels of $70 and $68 and extending the sell-off.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth Rs 1,271.25 crore, while domestic institutional investors (DII) net acquired equities worth Rs 1,823.94 crore on 15 March, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has GNFC and Indiabulls Housing Finance on its F&O ban list for 16 March. 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 long negative candle was formed on the daily chart that has completely overlapped the similar negative candle of the previous session. Technically, this pattern indicates an inability of the market to sustain the gains. Normally, such overlapping candles after a reasonable downward correction hints at a possibility of reversal pattern on the upside post confirmation.

“The short term trend of Nifty continues to be weak. Having moved into the oversold region, there is a possibility of an upside bounce from around 16,900-16,800 levels in the short term. Immediate resistance is at 17,200 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.