Indian benchmark indices are likely to open on a mildly positive note, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were in the green at the 17,629 level. In the previous session, Sensex closed in the red at 59,606, down 0.23% and the Nifty extended losses for a fifth session.
“The equity market traded cautiously between gains and losses as the minutes of the central bank policy meeting revealed concerns over high inflation and its commitment to bring inflation under control. In response to the heightened fears of rate hikes, the US 10 year treasury yield continued to stay high, near 4%. Additionally, the dollar index rose as the greenback cheered over hawkish Fed comments and rising geopolitical tensions,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Stocks in Asia-Pacific were mixed on Friday, even as Wall Street indices ended higher. Japan’s Nikkei 225 traded up by 1.18%, as South Korea’s Kospi gained 0.2% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component lost 0.20% and 0.23% respectively. Hong Kong’s Hang Seng index followed the Chinese indices, losing 0.98% in trade.
Crude Oil
Oil prices firmed more than 1% on Thursday before paring some gains, with Russian supply curbs partially offsetting an expected rise in U.S. inventories. Brent crude futures settled up 2%, while West Texas Intermediate crude futures (WTI) advanced 2% after six sessions of losses.
FII/DII Data
Foreign institutional investors (FII) sold net shares worth Rs 1,417 crore, while domestic institutional investors (DII) acquired equities worth Rs 1,586 crore on 23 February, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no shares on its F&O ban list for 22 February. According to the NSE, stocks that have exceeded 95% of the market-wide position limit (MWPL) are prohibited in the F&O sector. During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Technical View
“A small negative candle was formed on the daily chart which indicates a formation of high wave type candle pattern. Normally, such pattern formation after a reasonable downward correction signals possible upside bounce. Nifty is currently placed near the crucial support of 17,400-17,300 levels and has recovered decently on the upside in the recent past. The support of the 200 day EMA has been instrumental with regards to important trend reversal in the past. The downside violation of this moving average support at 17,590 levels signal higher possibility of sizable upside bounce in the market from the said lower supports for the short term. Immediate resistance is placed at 17,650 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“Going ahead, the low of 17,455 is likely to act as immediate support for the falling Nifty. A decisive fall below 17,450 may trigger the resumption of the fall. In that case, it may fall down towards 17,200–17,150. However, failure to break down may induce a recovery towards 17,750–17,850, where the upper band of the falling channel lies” said Rupak De, Senior Technical Analyst, LKP Securities.