SGX Nifty hints at a flat to negative start for Indian benchmark indices as Nifty futures trade 53 pts lower at 18254 on the Singapore Exchange. In the previous session, BSE Sensex gained 126 pts to close at 61,294, while NSE Nifty 50 settled above 18,230. “The Indian equity market has returned to green territory, with Nifty closing above 18,155. The positions of the important moving averages and the momentum indicator RSI are suggesting positive trades in the near term. However, the current chart setup doesn’t indicate any directional move. Over the short term, the index is likely to move within the range of 17,950-18,400. A breakout on either side will confirm a directional move,” said Rupak De, Senior Technical Analyst at LKP Securities.
Key things to know before share market opens
Global market watch: Asia-Pacific shares traded mixed on Wednesday as investors look ahead to the Federal Reserve’s meeting minutes for December. Australia’s S&P/ASX 200 was up 1.29% while the Nikkei 225 in Japan fell 1.6% in its first hour of trade. The Topix declined 1.11%. South Korea’s Kospi gained 0.39%, while the Kosdaq index was up 0.26%. Overnight in the US, Wall Street’s main indices closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple. The Dow Jones Industrial Average fell 0.03%, the S&P 500 lost 0.40%, and the Nasdaq Composite dropped 0.76%.
Key levels to watch: “The Nifty continues with the short-term consolidation; however within this consolidation, it is inching towards the upper end of the range. The structure is indicating that the bulls are preparing to overcome these hurdles. Going ahead, the Nifty can test 18400 in the short term with the potential to resume the larger uptrend. On the other hand, near term support zone shifts higher to 18080-18000,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas. Meanwhile, Bank Nifty has support at 42800 levels, while resistance is placed at 44100.
FII and DII data: Foreign institutional investors (FII) sold shares worth Rs 628.07 crore, while domestic institutional investors (DII) bought shares worth Rs 350.57 crore on 3 January, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for 4 January. Securities banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
IPO Watch: The Securities and Exchange Board of India (Sebi) has asked Oravel Stays, the parent company of travel tech firm Oyo, to refile the draft papers for its initial public offering (IPO) with applicable updates and revisions. The offer document was returned to the company with the said advisory on December 30, according to an update on the regulator’s website. SEBI has not elaborated on the kind of additional information it is seeking, but it may include revisions on basis for valuation, key performance indicators, risk factors and outstanding litigations, according to reports.
Crude oil slips: Crude oil prices tumbled 3.5% in volatile trade on Tuesday, pressured by weak demand data from China, a gloomy economic outlook and a stronger US dollar. Brent futures for March delivery fell $3.03 to $82.88 a barrel, by 11:45 am ET (16:45 GMT). US crude fell $2.81 to $77.45 per barrel. In early trade, both contracts had risen more than $1 a barrel.