The market is expected to remain uncertain with its wild moves until the geopolitical concerns fade away. The undertone remains on the bearish side, and any aberration on the global front could aggravate the bears
Indian equity markets are likely to open gap down on Friday amid weak global cues due to deepening Russia-Ukraine conflict. Ahead of today’s trading session, SGX Nifty was deep in the red, falling more than 200 points, suggesting a negative opening for benchmark indices BSE Sensex, NSE Nifty 50. Global cues were weak after Wall Street indices closed with losses overnight and Asian stock markets mirrored the fall. The market is expected to remain uncertain with its wild moves until the geopolitical concerns fade away. The undertone remains on the bearish side, and any aberration on the global front could aggravate the bears.
“Weakness in market is expected to continue in near term given escalating Russia-Ukraine conflict and surging crude and commodity prices. Upcoming state election results and US Fed meeting over next two weeks would further add to the volatility. If the crude and commodity prices continue to surge or remain high for longer, it may impact margins and earnings of various sectors. Thus sectors benefitting from high commodity prices are likely to stay in flavor. While sectors heavily impacted from high prices are expected to remain under pressure. Thus, till the prices don’t cool off, one can look at sectors such as oil & gas and metals while IT can be looked at from defensive perspective as it benefits from depreciating rupee,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
5 things to know before today’s trade
Global markets: Markets in Asia region slipped on Friday as investors remain on edge over Russia’s invasion of Ukraine. Japan’s Nikkei 225 slipped 2.47% while the Topix index shed 1.99%. Hong Kong’s Hang Seng index fell 2.51%. In mainland China, the Shanghai composite shed 0.93% while the Shenzhen component dipped 0.644%. South Korea’s Kospi dipped 1.26%. Overnight in the US, Dow Jones Industrial Average shed 96.69 points to 33,794.66 while the S&P 500 dipped about 0.53%. The Nasdaq Composite dropped 1.56% to 13,537.94.
Nifty technical view: “A long bear candle was formed on the daily chart, which has engulfed the small range candle of previous session. Technically, this indicate a broader range movement in the market around 16,750-16,450 levels and the market is now placed at the lower end of the range. This is negative indication and a decisive move below 16,400 is likely to drag Nifty down to 16,000 levels,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Nifty resistance, support levels: Nifty fell for the second straight session on Thursday giving up the morning gains on fears of impact of rising commodity prices on inflation, currency, interest rates and corporate performance. ” At present, Nifty has immediate support around 16350/16200 levels while on upside the resistance comes around 16650/16800 levels. On the other hand, Bank nifty has support at 34400 levels while resistance at 35900 levels,” said Sachin Gupta, AVP, Research, Choice Broking.
FII and DII data: Foreign institutional investors (FIIs) net sold Indian equities worth Rs 6,644.7 crore on Thursday. However, domestic institutional investors (DIIs) made net purchases of Rs 4,799.2 crore in Indian equity markets, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: There’s no stock under the F&O ban for Friday, 4 March. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.