Bears may maintain their dominance on Dalal Street ahead of weekly F&O expiry day. Ahead of today’s session, SGX was in the red hinting at a negative start for NSE Nifty 50, BSE Sensex. In the previous session, markets settled almost unchanged amid high volatility in absence of any major trigger. Nifty oscillated in a range and finally settled at 17,655.60. Most sectoral indices traded in sync with the benchmark wherein metal, energy and infra pack witnessed decent traction. “Markets are still in a range and rotational buying across sectors is helping the index to hold strong amid mixed global cues. Since all the sectors, barring IT, are contributing to the move, the focus should be more on stock selection,” said Ajit Mishra, VP – Research, Religare Broking.
5 things to know before market opening bell
Global market watch: Global cues were weak today as Wall Street’s three main indices closed lower on Tuesday, as traders assessed fresh economic data in volatile trading. The Dow Jones Industrial Average fell 0.55%; the S&P 500 lost 0.41%; and the Nasdaq Composite dropped 0.74%. Markets in Asia-Pacific also opened lower on Wednesday as investors anticipate the Federal Reserve to give its summary on current economic conditions. Japan’s Nikkei 225 traded 0.41% lower and the Topix was also down 0.37%. In South Korea, the Kospi traded 0.73% lower, and the S&P/ASX 200 in Australia was down 0.47%.
Nifty technical view: “A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a high wave type formation. But having placed this pattern within a narrow range, the predictive value of this pattern could be less. Hence, this could be considered as a range bound action for the market over the last few sessions. Nifty is currently placed at the crucial overhead resistance of 17800 levels and a decisive breakout of this area could pull Nifty back into upside momentum. Any weakness from here could find important support around 17450-17400 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out for: Nifty is consolidating near the 20-day SMA (Simple Moving Average) and taking support near 17550. As long as the index is holding the 17550 level, it could retest the level of 17750-17850. On the flip side, a fresh round of selling is possible after the dismissal of 17550 and on further decline, it could slip till 17500-17400, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. As for Bank Nifty, support is place at 39000 levels while resistance is at 40200 levels, said Palak Kothari, Senior Technical Analyst, Choice Broking.
IPO Watch: The maiden public issue of Tamilnad Mercantile Bank continued to see good participation on September 6, the second day of subscription. The offer received bids for 1.33 crore shares against IPO size of 87.12 lakh shares, getting subscribed 1.53 times. Retail investors remained ahead in terms of subscription, booking their quota 3.61 times, while non-institutional investors bought 1.27 times of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 98 percent.
Also Read: Wipro, IndiGo, Reliance, DreamFolks Services, Adani Power, Paras Defence stocks in focus on 7 September 2022
Stocks under F&O ban on NSE: Delta Corp remains in the NSE F&O ban list for September 7 as well. 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.
