Domestic share market is expected to open in the green as trends in the SGX Nifty indicate a positive opening Indian benchmark indices with a gain of 29 points. In the previous session, the BSE Sensex tanked 861 points, while the Nifty 50 fell 246 points. “The sharp sell-off in the US markets has changed the global tone and is impacting our markets too. Nifty must reclaim 17,400 to show resilience else it may also inch gradually lower and test the 16,900 zone. Amid all negativity, a few sectors/stocks are still showing tremendous resilience so the focus should be more on selection to navigate during the corrective phase,” Ajit Mishra, VP – Research, Religare Broking.
Global market watch: U.S. stocks closed lower on Monday, adding to last week’s sharp losses on nagging concerns about the Federal Reserve’s determination to aggressively hike interest rates to fight inflation even as the economy slows. The Dow Jones Industrial Average fell 0.57%, the S&P 500 lost 0.67%, and the Nasdaq Composite dropped 1.02%. Meanwhile, shares in the Asia-Pacific were higher on Tuesday. Japan’s Nikkei 225 rose 0.78% and the Topix index gained 0.85%. The Kospi in South Korea added 0.85% and the Kosdaq increased 1.09%. In Australia, the S&P/ASX 200 was fractionally higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.22%.
What technical charts say: “A reasonable positive candle was formed on the daily chart at the lows with gap down opening. Technically, this market action signal a sharp downside momentum. The unfilled opening downside gap of Monday could be considered as a bearish breakaway gap and if this gap remains unfilled for the next few sessions then that could mean market is in middle of a down trend, signaling more weakness ahead. The recent support of 17340-23.6% Fib. Retracement has been broken on the downside and the next lower target for the Nifty as per Fibonacci retracement comes around 16920, which is 32.8% retracement. The negative sequence of lower tops and bottoms is confirmed and the present weakness could be in line with the formation of new lower bottom (lower bottom reversal needs to be confirmed),” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today’s market performance.
Levels to watch out for: At the current juncture, the 21 DEMA and the recent unfilled gap around 17380-17520 are expected to act as an immediate hurdle for the index in the comparable period. While on the downside, 17150-17200 is expected to cushion any sort of fall, followed by the sacrosanct support of the unfilled gap around the psychological mark of 17000, according to Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One.
FII and DII data: Foreign institutional investors (FIIs) offloaded shares worth Rs 561.22 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 144.08 crore on Monday (August 29), according to the per provisional data available on the NSE.
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Stocks under F&O ban on NSE: As it is the beginning of September series, there is not a single stock getting added in F&O ban list for today (August 30). 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.
