Domestic equity markets are likely to open in the red, hinted SGX Nifty ahead of Monday’s trading session. Nifty futures traded 362 points, or 2.05% lower at 17,297 on the Singapore Exchange, signaling that BSE Sensex and NSE Nifty50 are headed for a gap-down start. “The hawkish monetary policy is seen by market participants resulting in a recessionary scenario in developed markets. The market will take immediate cues from the Jackson Hole symposium with regards to gauging the pace of the future rate hikes,” said Joseph Thomas, Head of Research, Emkay Wealth Management. In the previous session, Sensex advanced 59.15 points to end at 58,833.87, while its broader peer Nifty50, ended the session comfortably above the 17,500 mark in the previous session.
5 things to know before market opening bell
Global markets watch: Asian shares slid on Monday as the mounting risk of more aggressive rate hikes in the United States and Europe shoved bond yields higher and tested equity and earnings valuations. Japan’s Nikkei 225 tumbled 1.69%, while the broader Topix slipped 1.62%. Meanwhile in the US, Wall Street ended Friday with all three benchmarks more than 3% lower, as Federal Reserve Chief Jerome Powell’s signal that the central bank would keep hiking rates to tame inflation dampened investors’ sentiments.
What technical charts say: “A small negative candle was formed on the daily chart with minor upper and lower shadow. The Friday’s candle was placed within a long bear candle of previous session. Technically, this action indicates range movement in the market with high volatility. Nifty on the weekly chart formed a small negative candle with long lower shadow. After the downward reversal from the highs in the last week, Nifty showing upside recovery in this week signal probability of another round of upside bounce. However, the recent lows of 17350 is going to be crucial. The short term trend of Nifty is range bound with volatility and the consolidation movement is expected to continue this week,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out for: The support for nifty has shifted around 17470 levels while on the upside 17700 may act as an immediate hurdle. On the other hand, Bank nifty has support at 38200 levels while resistance at 39300 levels. Overall, the nifty is trading in range breaching either side can show direction, according to Choice Broking.
FII and DII data: Foreign institutional investors (FIIs) net offloaded shares worth Rs 51.12 crore on, while domestic institutional investors (DIIs) net bought equities worth Rs 453.59 crore on August 26 (Friday), according to the provisional data available on the NSE.
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Stocks under F&O ban on NSE: As it is the beginning of the September series, there is no stock on in the F&O ban list for (Monday) August 29. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
