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 17,792 level. In the previous session, Sensex closed flat at 60,673, down 0.03% and the Nifty extended losses for a second session . “Despite opening gains, negative cues from global peers cast a shadow over investor sentiments. Underpinned by inflationary concerns, the market is keenly eyeing the US fed meeting minutes, scheduled to be released tomorrow, for hints on further monetary policy tightening. Risk appetite was further hammered by FIIs turning net sellers and fear of El Niño,” said Vinod Nair, Head of Research, Geojit Financial Services.
Key things to know before share market opens
Wall Street Overnight
On Wall Street, all three major indexes ended lower, led by selloffs in technology, consumer discretionary, industrials and financial stocks. The Dow Jones Industrial Average fell 2.06%, the S&P 500 lost 2.01% and the Nasdaq Composite dropped 2.50%.
Crude Oil
Oil prices slipped in a volatile session as persistent concerns about global economic growth outweighed supply curbs and prompted investors to take profit on the previous day’s gains. Brent crude settled 1.2% lower at $83.05 per barrel, while the U.S. West Texas Intermediate crude (WTI) for March, which expires on Tuesday, fell 0.2% to $76.16 per barrel. The second-month contract slipped 0.38% to $76.16 a barrel.
FII/DII Data
Foreign institutional investors (FII) net acquired shares worth Rs 525.8 crore, while domestic institutional investors (DII) sold equities worth Rs 235.23 crore on 21 February, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Idea stocks on its F&O ban list for 22 February. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because 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 reasonable negative candle was formed on the daily chart with minor lower shadow. We observe formation of overlapping candles during present weakness and the sharp decline from the swing highs (16th Feb) is missing. This pattern indicates a possibility of an upside bounce which is expected to emerge from the lows.
“The positive chart pattern like higher tops and bottoms is intact and present weakness could be in line with the formation of new higher bottoms of the sequence. But, still there is no confirmation of any higher bottom reversal at the lows. There is a possibility of an upside bounce in the market from near the support of 17,700-17,750 levels. Immediate resistance is placed at 17,950-18,000 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to Watch
“Nifty is taking support at 17,830 a couple of times. Intraday traders can look for long opportunities only above the 17,890 level on Wednesday & the price should sustain above 17,890 for 15 minutes to confirm long. Traders can look for short only if Nifty breaks the 17,800 again & remains below for 15 minutes to confirm short,” said Rohan Shah, Head Technical Analyst, Stoxbox.