Nifty to reclaim 17,000 or bears to grip D-St- Check 7 things to know before share market opening bell

Nifty to reclaim 17,000 or bears to grip D-St? Check 7 things to know before share market opening bell

SGX Nifty hinted that the domestic equity indices could see a start in the green. On the Singapore Exchange, Nifty futures were trading higher, up 103 points, at the 17,130 level. On Thursday, markets snapped a 5 day losing streak, as Nifty closed 0.08% higher. However, it was still under the 17,000 level. Sensex closed at 57,634, up 79 points. 

“Markets traded volatile and ended almost unchanged, taking a breather after the recent slide. The tone was negative initially however rebound in select heavyweights helped Nifty to recoup losses and close flat. Meanwhile, a mixed trend was witnessed on the sectoral front wherein FMCG, Energy and Pharma traded upbeat while metal and IT ended lower. The broader indices too traded mixed and closed flat to marginally lower. Global cues are still mixed however oversold positions and the existence of support around 16,800 in Nifty may trigger a rebound towards the 17,200 zone. Having said that, participants shouldn’t go overboard and restrict positions to stocks that are showing relatively higher strength,” said Ajit Mishra, VP – Technical Research, Religare Broking.

Asian Markets

Stocks in Asia-Pacific traded in green on Friday, following cues from Wall Street. Japan’s Nikkei 225 traded higher by 0.77%, and South Korea’s Kospi gained 0.66% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded up by 0.88% and 0.68%, respectively. Hong Kong’s Hang Seng index soared 1.2%.

Crude Oil

Oil prices jumped after dropping to near 15-month lows earlier on Thursday, supported by reports that top producers Saudi Arabia and Russia had met to discuss ways to enhance market stability. Brent crude futures, the global benchmark, rose $1.37, or 1%, to settle at $74.70 a barrel, while the West Texas Intermediate (WTI) crude futures gained 74 cents, or 1.1%, to settle at $68.35 a barrel.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth Rs 282.06 crore, while domestic institutional investors (DII) net acquired equities worth Rs 2,051.45 crore on 17 March, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has GNFC on its F&O ban list for 17 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 small candle was formed on the daily chart with upper and long lower shadow. Technically, this pattern indicates a formation of long legged doji type candle patterns. Normally, this displays high volatility in the market and such formations post reasonable weakness could be considered as a reversal pattern on the upside after confirmation.

“The larger degree lower tops and bottoms continued in the Nifty as per daily chart and Thursday’s swing low of 16850 levels could be considered as a new lower bottom of the sequence. Further upside from here could confirm this reversal pattern and that could possibly open a sustainable upside bounce for the short term. A decisive move above the immediate hurdle of 17200 is expected to bring strong bounce in the market ahead. Immediate support is at 16850 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch

“Volume profile indicates Index has a strong support around 16,700-16,800 zone. Coming to the OI Data, on the call side, the highest OI observed at 17,000 followed by 17,100 strike prices while on the put side, the highest OI is at 16900 strike price. On the other hand, Bank Nifty has support at 38,600-38,800 while resistance is placed at 39,500-39,700 range,” said Om Mehra, Equity Research Analyst, Choice Broking.