SGX Nifty hinted at a tepid start for Indian share market. Nifty futures were trading 11 pts or 0.06% lower at 18747 levels, signalling a flat to negative start for domestic equities. In the previous session, the BSE Sensex rose 177 pts to 62,682, while NSE Nifty 50 closed above the 18,600 mark for the first time. “We expect Nifty to remain range bound in the near term but expect the broad markets to outperform as we believe that small and midcaps can catch up some part of their recent underperformance to large caps. Investments in the current environment should be stock specific, where investors should focus on good quality stocks with strong business models available at reasonable valuations,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities.
Key things to know before share market opening bell
Global market watch: Share in Asia were mixed on Wednesday. Hong Kong’s Hang Seng index traded 0.93% higher, while China’s Shanghai Composite fell 0.16%. Japan’s Nikkei 225 fell 0.6%, while South Korea’s Kospi reversed losses to rise 0.51%. Overnight in the U.S., major indexes ended the session lower. The S&P 500 declined 0.16% to end the session at 3,957.60 points. The Nasdaq declined 0.59% to 10,983.78 points, while Dow Jones Industrial Average rose 0.01% to 33,852.13 points.
Nifty technical view: “A small positive candle was formed at the highs on daily chart with upper shadow. Technically this pattern indicates consolidation movement in the market at the new highs. The positive chart pattern like higher tops and bottoms is intact as per daily chart and the market is now in line with the formation of new higher top of the sequence. Though, tiredness is visible in the market, but there is no confirmation of any reversal pattern unfolding at the new highs. Immediate support is placed at 18500 and the next overhead resistance to be watched around 18950,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch: “The momentum is in favour of bulls, but after a sustained run-up over the last few days, some bouts of turbulence and consolidation are possible in the next sessions before a gradual march towards 18800-19,000, with immediate support at 18,500 and key support at 18,400 levels. The support level for the Bank Nifty is 42300, while the resistance level is 43500-43700. Bank Nifty has lost momentum in recent trading sessions and is currently trading in a range, failing to set a new all-time high. As the general trend stays bullish, we predict the Nifty to eventually march towards the 18800 barrier,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.
IPO watch: Uniparts India will be the last IPO to open for subscription in November. The public issue will open today, and the bidding will continue till 2 December. The company has fixed a price band of Rs 548-577 per share. The IPO is an offer-for-sale (OFS), and is expected to fetch Rs 835.6 crore to the selling promoters and investors at the upper end of the price band. Investors can apply for a minimum of 25 shares and in multiples of 25 shares thereafter. Half of the OFS is reserved for qualified institutional buyers (QIBs), 15% for high-networth individuals, and the remaining 35% for retail investors.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 1,241.57 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 744.42 crore on 29 November, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: Punjab National Bank (PNB), BHEL, Delta Corp and Indiabulls Housing Finance are the four securities under the NSE F&O ban list for 30 November. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
Also Read: Nifty may head towards 19000, Bank Nifty outlook positive; ACC, Dabur among stocks to buy
Oil up on China COVID hopes: Oil rose on Tuesday on expectations for a loosening of China’s strict COVID-19 controls, but concerns that OPEC+ would keep its output unchanged at its upcoming meeting limited gains. Brent crude futures settled at $83.03 a barrel, losing 16 cents, or 0.2%. US West Texas Intermediate (WTI) crude futures settled at $78.20 a barrel, up 96 cents, or 1.2%.
