Nifty to top 17600 or will bears take over D-St- 9 things to know before share market opening bell

Nifty to top 17600 or will bears take over D-St? 9 things to know before share market opening bell

Indian benchmark indices are likely to open on a mildly positive note, hinted SGX Nifty despite weak global cues. On the Singapore Exchange, Nifty futures were in the green at the 17,589 level. In the previous session, Sensex tumbled 1.53% to 59,745 and Nifty extended losses for a third session, closing with sharp cuts at 17,554. “Resurgence of cold war between US & Russia has brought apprehension in the market. Although it should be a short-term effect, the fear of sanctions against Russia and its degree of implication on the economy, especially on food and oil exports, is adding to the anxiety. The market is just recovering from the pandemic, and high interest & inflation are the headwinds in the background. It is presumed that this war will be fought on an economic front, limiting its effect on strong economies like the US & India. Awaiting the release of Fed and RBI minutes are the other major elements that kept investors on the side lines,” said Vinod Nair, Head of Research, Geojit Financial Services.Key things to know before share market opensWall Street Overnight

On Wall Street, volatility reigned as traders factored in the minutes of the latest Federal Reserve meeting were released. Dow Jones fell 0.26% and S&P 500 slipped 0.16% however, the Nasdaq Composite added 0.13%.

RBI Minutes

The Reserve Bank of India’s (RBI) monetary policy committee (MPC) according to minutes published on Wednesday, has decided to take measures to ensure that inflation remains within the target going forward, while supporting growth. The objective is to achieve the medium-term target for CPI inflation of 4 per cent while keeping it within the target band of 2-6 per cent. “The monetary policy stance will need to remain disinflationary till inflation is returned to target,” said RBI deputy governor Michael Patra. “Global outlook has complicated the fight against inflation,” he added.

FOMC Minutes

The strong economic data raised concerns of further, aggressive rate hikes as the minutes showed most Fed members were in favor of taking a less hawkish stance. A large majority favored a 25 bps hike, only a few members supported a hike of 50 bps. However, since the meeting, the economic indicators and data have demonstrated the resilience of the U.S. economy and heightened worries of a longer rate-tightening cycle.

Crude Oil

Oil prices rose slightly in thin Asian trade on Thursday, pausing from a six-day losing streak fed by mounting concerns that more aggressive interest rate increases by central banks could pressure economic growth and fuel demand. Oil has also been pressured by signs of further crude inventory builds. U.S. crude oil and fuel inventories rose by 9.9 million barrels last week, according to market sources citing American Petroleum Institute figures on Wednesday.

FII/DII Data

Foreign institutional investors (FII) sold net shares worth Rs 579.82 crore, while domestic institutional investors (DII) acquired equities worth Rs 371.56 crore on 22 February, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Idea shares on its F&O ban list for 22 February. According to the NSE, the stock mentioned above are prohibited in the F&O sector because 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 managed to trade below the 17,800 mark after a gap-down entry in morning trade & remained down throughout the day & made a day low of 17529. Nifty is taking support at the daily trend line. Intraday traders can look for long opportunities only above the 17,660 level on Thursday Expiry & the price should sustain above 17,700 for 15 minutes to confirm long. Traders can look for short only if nifty breaks the 17,500 level & remains below for 15 min to confirm short,” said Rohan Shah, Head Technical Analyst, Stoxbox.

Levels to Watch

“Volume profile indicates Index has a strong support around 17,350-17,400 zone. Coming to the OI Data, on the call side, the highest OI observed at 17,700 followed by 17,800 strike prices while on the put side, the highest OI was at 17,500 strike price. On the other hand, Bank Nifty has support at 30,500-30,700 while resistance is placed at 40,600-40,700 range,” said Om Mehra, Equity Research Analyst, Choice Broking.