The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the red, as Nifty futures traded 35 points lower at 17,686.5 on the Singaporean exchange. On Tuesday, the markets closed lower, with Nifty down 0.26% at 17,660 while Sensex settled at 59,727, lower by 0.31%.
“The banking stocks pared the performance during the day while the market was grappling with the sell-off in the IT sector. However, the IT sector experienced a marginal relief rally, aided by bottom fishing, as the recent correction has made the sector attractive for long-term investment. The pharma sector also bucked the negative trend due to an improvement in outlook along with strong movements in mid and small-cap stocks,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Stocks in Asia-Pacific traded firmly lower as Japan’s Nikkei 225 slid 0.33% and Hong Kong’s Hang Seng index traded down by 1.12%. South Korea’s Kospi lost 0.04% in its first hour of trade. China’s Shanghai Composite traded lower by 0.40% while the Taiwan TSEC 50 Index fell 0.01%.
Crude Oil
Oil prices rose in early Asian trade on Wednesday as U.S. crude inventories were seen falling and on strong Chinese economic data, signaling strengthening fuel demand. Brent crude futures gained 7 cents to $84.84 a barrel at 0020 GMT. West Texas Intermediate U.S. crude was up 3 cents to $80.89 a barrel. Keeping prices from moving higher were concerns that potential increases in U.S. interest rates could dampen growth in the top oil-consuming country, according to Reuters.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 810.6 crore, while domestic institutional investors (DII) net purchased equities worth Rs 401.66 crore on 18 April, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Balrampur Chini Mills and Delta Corp securities on its F&O ban list for 19 April. 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
“Nifty is currently sustaining at the support of previous upside broken trend line hurdle around 17,600 levels, as per the concept of change in polarity. This support is visible in Nifty as per daily and weekly time frame charts. The short term trend of Nifty remains choppy and the medium uptrend status is intact. There is a possibility of some more consolidation for the next 1 or 2 sessions before resuming its upside momentum again from the lows. Immediate support is around 17,600-17,500 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty View
“Bank Nifty index continued to witness sideways momentum and is stuck in a broad range between 42,000-42,500. The options data also confirm where 42,000pe and 42,500Ce are where significant put writing is visible. The index as long as it sustains above 42,000 will remain in a buy-on-dip mode and if breached will lead to a further correction towards the 41,500 level,” said Rupak De, Senior Technical Analyst at LKP Securities.