Nifty to extend gains for fourth session or fall under 17300- Check 8 things to know before market opens

Nifty to extend gains for fourth session or fall under 17300? Check 8 things to know before market opens

SGX Nifty traded in the red, indicating a lower start for the domestic Indian equity markets at 17,514, down 61 points. On Monday, markets extended their gaining streak, as Nifty rose 0.22% to 17,398, while Sensex added 114 points to settle at 59,106. Markets were closed on Tuesday, 4 April on account of Mahavir Jayanti.

“Investors were of the view that the easing price pressure would provide the central bank with leeway to pause the rate hike. However, the surprise production cut by OPEC+ has fuelled concerns about inflationary pressure, which may prompt central banks to remain hawkish. The downside pressure in the market was mitigated as auto stocks rallied in response to the latest sales data, indicating a surge in demand. Additionally, India’s manufacturing PMI exceeded expectations, demonstrating its swiftest growth rate in three months due to increased output and new orders,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian Markets

Stocks in Asia-Pacific traded mixed as Japan’s Nikkei 225 tanked 1.31% and Hong Kong’s Hang Seng index declined 0.66%. South Korea’s Kospi gained 0.26% in its first hour of trade. China’s Shanghai Composite traded up by 0.49% while the Shenzhen Component lost 0.25%.  

Crude Oil

Oil prices rose in early Asian trade on Wednesday on anticipated U.S. crude inventory declines and OPEC+’s latest output cut targets. Brent crude futures gained 38 cents to $85.32 a barrel at 0021 GMT. West Texas Intermediate U.S. crude was up 33 cents to $81.04 a barrel.

FII/DII Data

Foreign institutional investors (FII) net bought shares worth Rs 321.93 crore, while domestic institutional investors (DII) net sold equities worth Rs 328.24 crore on 3 April, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has no securities on its F&O ban list for 5 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

“The underlying trend of Nifty as per small and long term chart remains positive. The sharp upside breakout of the crucial hurdle at 17,200 has been witnessed so far and the bullish candlestick pattern was formed as per weekly chart in the last week. This is a positive indication and signals more upside. The short term trend of Bank Nifty remains positive and the banking Index is expected to move towards the next overhead resistance of 41,200 levels in the near term. The short term trend of Nifty continues to be positive. The next upside levels to be watched are around 17,800 in the next 1-2 weeks. Immediate support is placed at 17,300 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Bank Nifty View

“The Bank Nifty has been outperforming the Nifty for the last few days; however, the week has started with a controlled positivity as the traders remained low ahead of the MPC meet. The trend will remain positive as long as the index sustains above 40000. On the higher end, immediate resistance is visible at 41000; above 41000 the index may move towards 42000 over the short term,” said Rupak De, Senior Technical Analyst, LKP Securities.

Indian Bond Yields

Indian government bond yields are expected to trend lower in early session on Wednesday, tracking U.S. peers, even as market participants await the Reserve Bank of India’s monetary policy decision. The 10-year benchmark 7.26% 2032 bond yield is expected to be in the 7.28-7.33% range on Wednesday after closing at 7.3142% on Monday.