Will Nifty extend losses for 8th session or will Q3 GDP bring cheer- 8 things to know before market opens

Will Nifty extend losses for 8th session or will Q3 GDP bring cheer? 8 things to know before market opens

Indian benchmark indices are likely to open on a flat note, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were in the green, up 6 points, at the 17,494 level. In the previous session, Nifty 50 dropped 0.42% to hit a new 3-month low, while Sensex fell 0.30%, extending losses for a seventh straight session. “Bears continued to wreak havoc in the domestic market as the latest data releases from the US heightened the existing worries of aggressive rate hikes. The personal consumption expenditure in the US, which is Fed’s key monitorable of inflation, increased in January, pressuring investors to stay away from equities markets. The US dollar index surpassed 105, adding further pressure on the INR,” said Vinod Nair, Head of Research, Geojit Financial Services.Key things to know before share market opensWall Street Overnight

As a result of favourable economic data, Wall Street‘s major indices rebounded. U.S. core capital goods orders accelerated in January, beating forecasts, according to government figures released on Monday, and contracts to buy previously owned U.S. homes rose the most in more than 2-1/2 years in January, according to Reuters.

Asian Markets

Stocks in Asia-Pacific were higher on Tuesday, following Wall Street’s cues. Japan’s Nikkei 225 traded up by 0.53%, and South Korea’s Kospi added 1.14% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component advanced 0.3% and 0.5%, respectively. Hong Kong’s Hang Seng index traded decisively in the positive territory, gaining 1.13% in trade.

Crude Oil

Oil prices declined on Monday as the dollar’s recent strength discouraged buying, though losses were limited by supply concerns after Russia halted exports to Poland via a key pipeline. U.S. crude fell 0.85% to $75.67 per barrel and Brent was at $82.25, down 1.09% on the day.

FII/DII Data

Foreign institutional investors (FII) net sold shares worth Rs 2,023 crore, while domestic institutional investors (DII) acquired equities worth Rs 2,232 crore on 24 February, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no stocks on its F&O ban list for 27 February. 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 negative candle was formed on the daily chart with a long lower shadow. Technically, this pattern indicates a formation of a bullish hammer type candle pattern (not a classical one) at the lows of 17,300 levels. Normally, such hammer pattern formation post reasonable decline in the underlying signal caution for reversal on the upside post confirmation. Hence a sustainable upside bounce on Tuesday is likely to confirm a short term bottom reversal pattern.

“The short term trend of Nifty continues to be negative. Having declined in the last seven sessions, the chances of a pullback rally is emerging from the lows of 17,300 levels. Any attempt of upside bounce from here could find strong resistance around 17,600 levels. The immediate support is placed at 17,300 -17,250 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to Watch

“Taking new long positions must be avoided until the Nifty attains 17,620 levels. In the weekly chart, Index remained beneath the middle Bollinger band. Index may find support around the 17,200 levels. On the derivatives front, the highest call OI is at 17,600 followed by 17,500 strike price while on the put side, highest OI remains at 17,200 strike price. On the other hand, Bank Nifty has support at 39,700 levels while resistance is placed at 40,900-41,000,” said Om MehraEquity Research Analyst, Choice Broking.

India’s Q3 GDP

India’s Q3FY23 GDP will be released later on Tuesday. In the previous quarter, the GDP growth rate moderated to 6.3% in after a double-digit growth in Q1. The markets will be closely eyeing the Q3 GDP numbers.