Nifty to reclaim 18750 or bears to drag index below 18500? 5 things to know before market opening bell

SGX Nifty hinted at a positive start for Indian benchmark indices amid strong global cues. Ahead of the week’s last trading session, Nifty futures were trading 0.35% higher at 18792 on the Singapore exchange. In the previous session, BSE Sensex gained 160 points to 62,571, while NSE Nifty 50 rose 49 points to 18,609. “Going forward, keep focusing on thematic movers for better trading opportunities. There have been contributions across the board, the significant benefactors that boosted the bullish sentiments were from the Banking space, especially the PSU bank index which soared to a new 52-week high. Looking at these developments, the undertone is likely to remain upbeat, and any intraday blip is expected to augur well for the bulls,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One.

Key things to know before share market opens

Global market watch: Asian stocks advanced after US shares posted their first gain this month, with traders focused on inflation figures in China and the US. Japan’s Topix index rose 1%, while South Korea’s Kospi index fell 0.5%. Hong Kong’s Hang Seng Index rose 0.8%, while China’s Shanghai Composite Index fell 0.2%. Overnight in the US, the S&P 500 ended higher, snapping a five-session losing streak. The Dow Jones Industrial Average rose 0.55%, and the Nasdaq Composite added 1.13%.

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Nifty technical view: “A long bear candle was formed on the daily chart, that placed at the edge of moving below the support of 18550-18500 levels. This pattern indicates continuation of weakness in the market and lack of strength to sustain the intraday highs. The positive chart pattern like higher tops and bottoms is still active and we expect Nifty to bounce back from the support 18450 levels. If the lower support gets broken, then the market could test another lower base of around 18150 levels. Immediate resistance is placed at 18650 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Key levels to watch for: “The market undertone is bullish, and the major trend of the index is on the positive side. Hence any short-term corrections remain as a buying opportunity. However minor corrections in the upcoming weeks cannot be ruled out. Bank Nifty has support at 43000 levels while resistance is placed at 44200. Technically, as Nifty manages to close above 18750 levels, there would be another stage for upside rally. The Nifty VIX closed at 13.40, and we anticipate that Nifty will rise over the course of the upcoming week,” said Om Mehra, Technical Associate, Choice Broking.

FII and DII data: Foreign institutional investors (FIIs) net sold shares worth Rs 1,131.67 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 772.29 crore on 8 December, according to the provisional data available on the NSE.

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Stocks under F&O ban on NSE: The National Stock Exchange has kept GNFC and Indiabulls Housing Finance, under its F&O ban list for 9 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.


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