The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the green, as Nifty futures traded 31 points higher at 17,684.5 on the Singaporean exchange. On Wednesday, the markets extended losses, closing lower, with Nifty down 0.23% at 17,618 while Sensex settled at 17,618, lower by 0.27%.
“The dark clouds of weak Q4 numbers are haunting the domestic market leading to a consecutive third fall in the week. IT stocks continued their selling spree ahead of the release of earnings from other tech majors. Tepid cues from the global peers are also creating havoc as the market prices in the possibility of another rate hike by the Fed. The biggest risk for the market today is a downgrade in the corporate earnings forecast,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Asian stocks edged lower on Thursday, while the dollar was on the back foot as investors remained cautious ahead of an expected 25 basis point hike in interest rates by the U.S. Federal Reserve next month. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.16% lower, while Japan’s Nikkei was up 0.07%. Australia’s S&P/ASX 200 index was 0.07% lower.
Crude Oil
Oil prices fell on Thursday as muted U.S. economic data and expectations of interest rate hikes pushed up the U.S. dollar, prompting fear of a stronger dollar hurting global oil demand by making it more expensive. Brent futures for June delivery were down by 37 cents, or 0.4%, at $82.76 a barrel. West Texas Intermediate crude (WTI) for May delivery lost 28 cents, or 0.35%, to trade at $78.88.
FII/DII Data
Foreign institutional investors (FII) net offloaded shares worth Rs 13.17 crore, while domestic institutional investors (DII) net sold equities worth Rs 110.42 crore on 19 April, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no its F&O ban list for 20 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
“On the lower end, the Nifty found support at the 200 DMA for the second time in the last three days, pointing towards the importance of the said support. A decisive fall below the 200 DMA (17587) may trigger the panic button. In that case, Nifty might fall down towards the 17400 level, where the next level of support lies. The momentum indicator is indicating weakness with its bearish crossover on the daily time frame. Therefore, the near-term trend looks negative, while the short term setup remains a buy on dips until the Nifty falls below 17400 decisively,” said Rupak De, Senior Technical Analyst at LKP Securities.
Bank Nifty View
“The Bank Nifty index continued to trade in a narrow range one day before the weekly expiry. The options data suggest support at 42,000 and resistance at 42,500 where put and call writing respectively is visible. The undertone remains bullish as long as the index holds the support of 42,000 on the downside,” said Kunal Shah, Technical Analyst, LKP Securities.
Levels to Watch
“Volume profile indicates Index has a strong support around 17,450-17,550 zone. Coming to the OI Data, on the call side, the highest OI observed at 17,700 followed by 17,800 strike prices while on the put side, the highest OI is at 17,500 strike price. On the other hand, Bank Nifty has support at 41,500-41,700 while resistance is placed at 42,500-42,700 range,” said Deven Mehata, Equity Research Analyst, Choice Broking.