Indian equity markets are likely to open gap-down as trends on the SGX Nifty indicate a negative opening for domestic benchmark indices. “The risk of pickup in inflation and rise in Covid-19 case in some parts of the world continue to shape market moves. Domestic Market has been stuck in range of 250 points over last couple of sessions. Nifty is not being able to hold on to its recovery and is witnessing selling at every bounce,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. In the previous session, the BSE Sensex fell below the psychological 59,000 mark, down 483 points, at 58,965, while the NSE Nifty 50 lost 109 points to settle at 17,675.
Things to know before today’s market opening bell
Global markets: Markets in Asia largely slipped in Tuesday morning trade, as investors continue monitoring developments surrounding the Covid situation in mainland China. The Shanghai composite shed early gains to trade 0.17% lower while the Shenzhen component advanced fractionally. Hong Kong’s Hang Seng index rose 0.6%. Japan’s Nikkei 225 in Japan slipped 1.2%, while the Topix index dipped 1.04%. South Korea’s Kospi shed 0.87%. Overnight in the US, all three major Wall Street indices closed sharply lower as investors started the holiday-shortened week in a risk-off mood, as rising bond yields weighed on market-leading growth stocks ahead of crucial inflation data.
Nifty technical view: “After showing a sustainable upside bounce on Friday, Nifty slipped into weakness with range bound action on Monday and closed the day lower by 109 points. A small negative candle was formed with gap down opening (body gap, not a western gap) on the daily chart, which is placed beside the long positive candle of Friday. Technically. this pattern reflect ongoing sideways movement in the market at the support of 17600 levels. The positive sequence like higher tops and bottoms is active and there is no confirmation of any higher bottom reversal as of now. Nifty is currently placed at the 10day EMA around 17650 levels and a move below this area could drag Nifty down to another support of 20 day EMA around 17450 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“Nifty as per weekly chart showing weak signal. A doji type candle pattern was formed in last week at the important resistance of 18150 levels. Hence, any attempt of upside bounce could attract selling pressure in the near term. The short term trend of Nifty continues to be weak with range bound action. Still there is no indication of any higher bottom formation. A slide below 17600-17500 levels could open more weakness in the near term. A choppy movement within high low of 17800-17600 is expected to continue for the short term,” he added.
Nifty levels to watch out for: “A 10 day SMA and 17600 retracement support zone would act as key support levels for the Nifty. Above the same, a strong possibility of a pullback rally up to 17850-17900 is not ruled out. On the flip side, below 17600 range breakout, the market could retest the level of 17500-17430,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Q4 Results today: Anand Rathi Wealth, GM Breweries, Hathway Cable & Datacom, Tinplate Company of India, Evexia Lifecare, and Gayatri Bioorganics will release quarterly earnings today (12 April).
Stocks under F&O ban on NSE: Delta Corp and RBL Bank are the two stocks under the NSE F&O ban for 12 April. 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.