Nifty to gain for sixth session or fall under 17500- Check 8 things to know before share market opening bell

Nifty to gain for sixth session or fall under 17500? Check 8 things to know before share market opening bell

The SGX Nifty is trading flat, mildly in the green, higher by 8.5 points. Nifty futures on the Singaporean exchange are at the 17,725 level, indicating a positive start for the domestic equity indices, BSE Sensex and NSE Nifty. On Friday, the Indian share market was closed on account of the Good Friday holiday, however, on Thursday, markets extended their winning streak to five days. Sensex closed above 59,800, higher by 143 points while Nifty closed just shy of 17,600.

“It was an encouraging week for the Indian stock market, with a solid upside compared to other EMs which were muted. The release of positive monthly auto sales data, higher-than-expected PMI manufacturing data, strong quarterly bank and NBFC numbers, and cut in windfall tax were the driving factors. Given the upside horizon on domestic growth and a stable financial market, India is expected to have an edge in the performance of equities going forward. We can expect FII inflows to prosper going forward. However, the high level of inflation should meaningfully drop during the latter part of the year, or else the positivity will be lost,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Stocks in Asia-Pacific traded mixed as Japan’s Nikkei 225 advanced 0.34% and Hong Kong’s Hang Seng index traded flat, higher by 0.01%. South Korea’s Kospi soared 0.99% in its first hour of trade. China’s Shanghai Composite traded flat, higher by 0.1% while the Shenzhen Component lost 0.03%.

Crude Oil

Oil prices nudged higher in early Asian trade on Monday, supported by the prospect of tighter supplies from OPEC+ producers from May, but concerns about the global economic outlook capped gains. Brent crude futures gained 13 cents, or 0.2%, to $85.25 a barrel by 2356 GMT, while U.S. West Texas Intermediate crude was at $80.84 a barrel, up 14 cents, or 0.2%.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth Rs 475.81 crore, while domestic institutional investors (DII) net sold equities worth Rs 997.08 crore on 6 April, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no securities on its F&O ban list for 10 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

“Nifty is currently placed at the important resistance of previous opening downside gap of 10th March around 17600 levels. The Nifty on the weekly chart formed a reasonable positive candle for the second consecutive week and placed at the crucial hurdle of down sloping trend line around 17600 levels. The short term trend of Bank Nifty remains intact. Minor consolidation is expected in the banking sector before showing a decisive upside breakout ahead. The near term trend of Nifty is positive. Having placed at the hurdle, there is a possibility of further consolidation at the highs in the next week before showing a decisive upside breakout of 17600-17700 levels. Immediate support is at 17500,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Bank Nifty View

“The Bank index continued its rally on the upside and any dip was bought confidently by the bulls. The index surpassed the level of 40,000 last week and post that there has been a one-way rally. The index is now trading around the next resistance zone of 41,000 and if we sustain above this in the upcoming week we expect the rally to continue higher toward the 42,000 mark. The lower-end support is visible at the 40,600-40,500 zone which will act as a cushion for the bulls,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

US Nonfarm Payroll data

Nonfarm payrolls grew by 236,000 in March versus the 240,000 expectation. The unemployment rate ticked lower to 3.5%, as the Labor Force Participation Rate rose to 62.6% from 62.5%