Equity benchmark India – BSE Sensex and NSE Nifty50 – Stop the winner three days on Thursday amid weakness in financial and stock. However, strength in automatic stock and select heavy classes such as ITC and Titan lend some support.
What is suggested by the graph for Dalal Street now?
Nifty50 has formed a long bear candle on the daily chart, indicating a reversal pattern towards uptrend recently, according to Nagaraj Shetti, technical research analyst at HDFC Securities.
“This is not a good sign and people might expect further weaknesses in the market in front,” he said.
Sell more cards
Giving sales can be seen in the market regularly, said Shrikant Chouhan, Head of Equity Research (Retail), Securities Box.
“Concerns about geopolitical tensions, the possibility of a US interest rate increase and the increase in oil prices is still a strong threat to the market … after a promising uptrend rally, Nifty found resistance near the important retracement level of 17,800. For traders, 17,500 and 17,400 will act as support Strong and direct resistance can reach 17,700 -17,800, “he said.
Here are the main things that need to be known about the market before session February 4:
SGX Nifty.
At 7:47 a.m. on Friday, Singapore Exchange (SGX) Nifty Futures – the initial indicator of the Nifty index – up 45.5 points or 0.3 percent at 17,564, showing a positive start on Dalal Street.
Global market
Equity in other Asian markets rose on Friday, shrugging on the slump on Wall Street last night after a terrible estimate by Facebook. The most extensive MSCI Asia Pacific stock index outside Japan rose 0.9 percent in the final calculation.
Nikkei 225 Japan rose 0.4 percent. The Chinese market remains close for the Chinese New Year holiday.
S & P 500 futures rose one percent.
On Thursday, S & P 500 fell 2.4 percent, Dow Jones 1.5 percent and the Nasdaq Composite 3.7 percent, flicked a four-day run. Meta Facebook owner loses more than a quarter of the close market because the prospect is disappointing sending its stock.
What is expected in Dalal Street
HDFC Securities’ Shetti believes the benchmark index has reversed its short-term uptrend, and direct resistance is now placed at 17,650. “Intense follow-up weaknesses from here can open more downside in the near future. Reversal confirmation tends to drag the nifty level up to 17,000-16,800,” he said.
Nifty short-term trends will change to bullish only after the closure above the rigid resilience rate of 17,800, said Manish Hathiramani, merchant index ownership and technical analyst at Deen Dayal Investments.
He saw good support at 17,200, just a break below which on the basis of closing would cause the resumption of the current bear market. “We are currently in a neutral area and therefore ‘waiting and watching’ must be adopted,” his advice.
Key level to be considered
Nifty50: Direct support for the expected index at 17,500, and resistance at 17,700, according to Mohit Nigam, Head-PMS in Hem Securities.
Nifty Bank: For banking indices, it sees immediate support at 38,800 and resistance at 39,300.
FII / DII Activity
Temporary exchange data shows foreign institutional investors (FIIS) of Indian equity net worth Rs 1,597.5 Crore on Thursday. Net sales by domestic institutional investors (DIIS) reached Rs 370.6 Crore.
Call / put open interest
Exchange data shows the open interest of maximum calls accumulates at an area of 17,700, with a 1.5 lakh contract, and 18,000, with a 1.4 lakh contract. On the other hand, the maximum open interest is placed at 17,200, with almost 96,000 contracts.
This shows that 17,700 has become a big obstacle for a good, with meaningful support at 17,200.
