Nifty may retest 17325-17400 if its holds above 17100; 5 things to know before today’s opening bell

Nifty may retest 17325-17400 if its holds above 17100; 5 things to know before today’s opening bell

Domestic benchmark indices soared higher during the second half of yesterday’s trading session, ending their losing streak. S&P BSE Sensex added 231 points or 0.40% to close at 57,593 points while the NSE Nifty 50 index gained 69 points or 0.40% to close at 17,222. Bank Nifty was also in the green but broader markets closed mixed. Entering the second session of the week, SGX Nifty was up more than 100 points suggesting that Dalal Street may continue its upward march. Global cues were supportive. 

Global watch: On Wall Street, tech-heavy NASDAQ zoomed 1.31%, followed by S&P 500 and the Dow Jones. Looking at Asain markets, Shanghai Composite, Hang Seng, Nikkei 225, Topix, KOSPI, and KOSDAQ were all trading in the green.

Technical take: Closing with gains on Monday, the Nifty 50 formed a small body of positive candle on the daily chart with a long lower shadow. “Technically, this pattern indicates the formation of a bullish hammer type candle pattern. But, having moved in a narrow range movement for few sessions, such hammer pattern amidst range movement could be less predictive,” said Nagaraj Shetti, Technical Research  Analyst, HDFC Securities. He added that the market action signals emergence of buying from the lower range and also from a key lower support.

Levels to watch out for: Nifty has again taken support at 17000 but the broader texture of the market is still non-directional, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. “In the near future, as long as the Nifty is holding the 17100 level, the market is likely to retest the level of 17325-17400. However, if the Nifty falls below the same, it could trigger further weakness till 17000-1695,” he added. Nagaraj Shetti believes that a sustainable move could only occur above 17500 levels, which could then open upside targets of around 17600-17800 levels for the near term.

FII and DII trades: Foreign Institutional Investors (FII) were once again net sellers of domestic stocks. FIIs pulled out Rs 801 crore from domestic markets. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 1,161 crore. 

Call and Put OI: For the March series, the maximum call Open Interest (OI) is placed at the 18000 strike. Put OI is the most at 16000 strike. 

Check the source here –Source, Financial Express.