Indian benchmark indices are likely to open with gains amid positive global cues. SGX Nifty hinted at a positve start for domestic equities on Tuesday as Nifty futures traded higher at 18072 level on the Singapore Exchange. In the previous session, BSE Sensex jumped 721 pts to 60,566, while NSE Nifty 50 rose 208 pts to 18,015. ” After sharp fall of 3% in Nifty over the last three trading sessions before Monday, value based buying emerged at lower levels. In the absence of any major global events due to year-end holidays, we expect market to remain sideways to positive based on news flows. We expect focus on Banks, Auto, capital goods and defense sectors to do well in the near term,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
5 things to know before share market opens
Global market watch: Stocks in Asia mostly rose as China officially announced overnight it will end quarantine for inbound travelers in January. Hong Kong’s Hang Seng index fell 0.44%. In mainland China, the Shanghai Composite rose 0.35% and the Shenzhen Component gained 0.32%. In Japan, the Nikkei 225 rose 0.46% and the Topix gained 0.55%. The Kospi in South Korea gained 0.47% and the Kosdaq climbed 1.12%. Overnight in the US, Wall Street stocks ended in green. The Dow Jones Industrial Average closed 0.5% higher, the S&P 500 rose 0.6%, and Nasdaq Composite added 0.2%.
Levels to watch: “Nifty may find support around 17850 followed by 17800 levels, while on the upside, 18220 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 41600 levels while resistance is placed at 43500. Currently, the index has mixed signals from the global front, especially in the US markets. We suggest short-term traders must ride with hedged positions to counter volatility. Overall, Investors may opt for quality stocks and Index ETF for long-term portfolios,” said Om Mehra, Equity Research Analyst. Choice Broking.
FII and DII data: Foreign institutional investors (FIIs) sold shares worth Rs 497.65 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,285.74 crore on Monday, 26 December, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has added Punjab National Bank to its F&O ban list for 27 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.