Nifty to extend gains or slip below 17,800- Check 9 key things to know before share market opens on 25 April

Nifty to extend gains or slip below 17,800? Check 9 key things to know before share market opens on 25 April

The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the red, as Nifty futures traded 31 points lower at 17,798 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex added gains on Wednesday to end the session in green. The Nifty 50 rose 0.25% to 17,813 and Sensex climbed 0.28% to 60,300.

“The domestic bourses mirrored the mood on Wall Street as soft economic data and underwhelming earnings dragged US equities to a weak close yesterday. However, the market gradually recovered after an uptick in US futures, with the earnings of tech companies providing support. Adding to investors’ concerns about a possible recession, the US consumer confidence data for April hit a nine-month low ahead of the upcoming Fed policy meeting,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region traded mixed on Thursday. South Korea’s Kospi fell 0.16% in trade while China’s indices, Shanghai Composite and the Shenzhen Component, added 0.03% and gained 0.26%, respectively. Hong Kong’s Hang Seng index declined 0.25%, while Japan’s Nikkei 225 fell 0.28%. The Taiwan Weighted index added 0.14%.

Crude Oil

Oil pricesrose on Thursday, paring earlier losses that were fuelled by U.S. recession fear and increased Russian oil exports dulling the impact of OPEC production cuts.Brent crudewas trading at $78.04 a barrel, up 35 cents, or 0.45%, at 0039 GMT. U.S. West Texas Intermediate crude was at $74.51 a barrel, adding 21 cents, or 0.28%.

FII/DII Data

Foreign institutional investors (FII) net purchased shares worth Rs 1,257.48 crore, while domestic institutional investors (DII) net purchased equities worth Rs 227.88 crore on 26 April, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has ZEEL and GNFC securities on its F&O ban list for 27 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.

Bank Nifty Outlook

“Bulls have kept their hold on the Bank Nifty as the index ended in the green. In the short term, the trend remains bullish with the new range for traders being 42,500-43,000, where writers have significant build-up. On the lower end, a fall below 42,500 may trigger panic in the banking space; whereas on the higher end, a decisive rise above 43,000 may induce further rally,” said Rupak De, Senior Technical Analyst at LKP Securities.

Technical View

“Nifty is gradually advancing towards the crucial overhead resistance of 17,863 levels. The short term trend of the market continues to be positive. The Nifty is now reaching the important resistance of 17,863 levels in the short term. There is a possibility of minor consolidation movement at the highs before showing a decisive upside breakout for the near term. Immediate support is at 17,700 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to Watch

“OI Data indicates, on the call side the highest OI is witnessed at 18,000 followed by 17,900 strike prices while on the put side, the highest OI remains at 17,700 followed by 17,600 strike price. Investors should brace themselves for turbulence as the Fed is set to meet on its key interest rate next Tuesday and Wednesday,” said Om Mehra, Equity Research Analyst, Choice Broking.

Currency Outlook

“The Indian rupee has given an upward breakout after Tuesday’s lackluster trade as month-end rebalancing and stop-loss orders trigger. The local unit surged to its strongest level since March 6 during the day following regional currencies. We expect high volatility and a surge in volumes in the forex markets starting from Friday’s Bank of Japan Policy meeting. In the near term, spot USDINR is likely to trade between 81.60 to 82.20 with a bearish bias,” said Dilip Parmar, Research Analyst, HDFC Securities.