Sensex, Nifty may continue upward march; 5 things to know before today’s opening bell

Bulls remained in control on Dalal Street on Wednesday as domestic indices rallied despite soaring crude oil prices as investors went bottom shopping. S&P BSE Sensex zoomed 1,223 points or 2.29% to settle at 54,647 while the NSE Nifty 50 index added 331 points or 2.07% to close at 16,345. India VIX, the fear gauge of domestic markets slipped 3.9%. Entering the weekly Futures & Options expiry session, SGX Nifty was up a whopping 250 points, suggesting a positive start to the day’s trade, continuing yesterday’s momentum. Global cues were positive after Wall Street indices soared higher.

Global watch: On Wall Street, the tech-heavy NASDAQ zoomed 3.6% on Wednesday while the S&P 500 added 2.57% and Dow Jones was up 2%. Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all seen marching higher during the early hours of trade on Thursday. 

Technical take: Moving higher for the second consecutive session, the Nifty 50 formed a long bull candle on the daily charts, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a sharp upside reversal in the market from the lows,” he added.

Levels to watch out for: Now Nifty may fund support at 16200 and 16100 zone, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. “At higher levels, above 16420, the index would bounce back to 16480 or 16600 levels. A close below 15980 would be negative for the market,” he added. Meanwhile, Rahul Sharma, Director & Head – Research, JM Financial believes that the positive stance for Nifty will continue for 16500 and 16840. “Short covering is still not visible which means more upside can come if there is no fresh negative news,” he added.

FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic equities once again, pulling out Rs 4,818 crore. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 3,275 crore.

Call and Put OI: Call open interest for the March series is the most at 17000 strike, followed by 16500 strike. On the other hand, Put OI is the maximum at 16000 strike, followed by 16500 strike. 

from The Financial Express https://ift.tt/On4V6kq