Indian benchmark indices are likely to open on a mildly negative note, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were in the red at the 17,515 level. In the previous session, Sensex closed in the red at 59,463, down 0.24% and the Nifty extended losses for a sixth session, closing at 17,465. “The domestic market is broadly demonstrating a lack of confidence, registering its sixth consecutive day of losses despite global markets turning green. Continued selling in the domestic market by FIIs is acting as an overhang in sustaining the early gains. Crude oil prices rallied as the prospect of lower Russian exports outweighed rising US inventory,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
Last week, Wall Street closed its worst week in 2023 so far as each index logged its worst weekly decline. On Friday, S&P 500 fell1%, tech-heavy Nasdaq Composite dropped 1.7% and blue-chip Dow Jones Industrial Average shed 1%.
Crude Oil
Oil was little changed in early trade on Monday, as Russia’s plans to deepen oil supply cuts continued to support prices, while increasing global inflation risks and rising crude inventories in the United States weighed. West Texas Intermediate U.S. crude futures (WTI) was trading at $76.36 a barrel, 4 cents, or 0.05% higher, while Brent crude futures was down 2 cents, or 0.02%, at $83.14 a barrel.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 1,470.3 crore, while domestic institutional investors (DII) acquired equities worth Rs 1,401 crore on 24 February, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no stocks on its F&O ban list for 22 February. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Technical View
“A long bear candle was formed on the daily chart, which indicates a down trend continuation pattern. Though, Nifty placed near the crucial support of 17,450-17,500 levels, there is no sign of any reversal pattern unfolding at the lows. New swing low has been formed at 17,421 levels.
“The short term trend of Nifty continues to be negative. Having failed to show any crucial bottom reversal pattern near the important support of 17,500 levels so far, there is a possibility of further weakness in the coming sessions. The next lower support is at 17,300 and any upside bounce from here could find resistance at 17,600 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“With the market in oversold territory, we could see a quick pullback rally if the index trades above 17,500. Above which, the pullback formation is likely to continue till 17,600-17,750. On the flip side, as long as the index is trading below 17,500, the weak sentiment will continue. Below which the index could retest the level of the 200 day SMA or 17400,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.