Indian fairness markets are more likely to open gap-down on Wednesday as as early traits on the SGX Nifty point out a adverse opening for Indian benchmark Indices BSE Sensex and NSE Nifty 50. “Today, markets will react to CPI inflation data which released in India and US post market hours yesterday. Also, the ECB’s policy outcome would have a bearing on the global market. The earning season has kicked in and we expect overall good performance from the companies. Given government reforms and strong economic recovery, the long term trend of the equity market remains positive though there might be hiccups in between,” mentioned Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
In the earlier session, Sensex fell 388 factors or 0.66% to shut at 58,576 factors, whereas the Nifty 50 index shed 144 factors or 0.82% to finish at 17,530. “Markets will first react to macroeconomic data i.e. IIP and CPI data in early trades. Besides, weekly derivatives expiry and IT major, Infosys earnings will keep volatility high. The benchmark is gradually drifting lower and a decline below 17,400 could push the Nifty to 17,250 levels. We reiterate our cautious approach and suggest focusing on sectors/themes which are showing resilience,” mentioned Ajit Mishra, VP – Research, Religare Broking.
Key issues to know earlier than at present’s market opening bell
Global cues: Shares in Asia have been combined in Wednesday morning commerce as buyers watched for market response to the discharge of a barely hotter-than-expected U.S. inflation report. In China, the Shanghai composite slipped 0.7% whereas the Shenzhen part traded 0.91% decrease. Hong Kong’s Hang Seng index declined 0.48%. Japan’s Nikkei 225 climbed 1.25%, whereas the Topix index superior 0.68%. South Korea’s Kospi rose 0.78%. Meanwhile, shares on Wall Street slipped in a single day following the US inflation report launch. The Dow Jones Industrial Average shed 0.26%, whereas the S&P 500 dipped 0.34%. Nasdaq Composite declined 0.3%.
Nifty technical view: “Nifty continued with follow-through weakness on Tuesday amidst volatility and closed the day lower by 144 points. A reasonable negative candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicate continuation of weakness in the market. After sliding below the initial support of 17600 levels on Monday, Nifty is now placed at the next lower support of around 17500-17450 levels. Though, Nifty placed at the support, still there is no indication of any convincing bottom reversal pattern at the lows and one may expect further weakness in the short term,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
After exhibiting resilience in the previous few periods, the general market breadth has become adverse on Tuesday and broad market indices have closed within the crimson. This is just not an excellent signal and one might count on additional weak point forward. The quick time period pattern of Nifty continues to be adverse. Though Nifty is positioned on the assist of 17400 ranges, there’s a risk of additional weak point within the quick time period. The market may presumably discover assist round 17300 ranges and is anticipated to bounce from the lows,” Shetti added.
Nifty ranges to be careful for: “Tuesday’s session saw Nifty continuing the trend with downward bias as no conviction was seen on the upside. Index has been trading above all its major moving averages and importantly it took support from its 21 Day EMA. After today’s close, on the lower end, support is visible at 17,400 -17,450 whereas resistance is placed at 17,600-17,640. 17400 may continue to act as support below which the Nifty may witness a serious correction,” mentioned Harsh Parekh, Technical Analyst, Bonanza Portfolio.
This fall Results at present: Infosys, Den Networks, and Lesha Industries will launch its quarterly earnings at present (13 April).
Hariom Pipe itemizing: Iron and metal merchandise producer Hariom Pipe Industries shares will debut on bourses at present. The Hyderabad-based firm’s preliminary public provide, which was subscribed 7.93 instances. The portion put aside for retail buyers was subscribed 12.15 instances, whereas non-institutional buyers and certified institutional patrons bid shares 8.87 instances and 1.91 instances their allotted quota.
Stocks beneath F&O ban on NSE: RBL Bank is beneath the F&O ban for 13 April. Securities within the ban interval beneath the F&O section embrace corporations through which the safety has crossed 95 p.c of the market-wide place restrict.
Source: www.financialexpress.com”