Indian benchmark indices BSE Sensex and NSE Nifty 50 are likely to see a muted start amid mixed cues, hinted SGX Nifty. Ahead of the session, Nifty futures traded 23.5 pts or 0.13% lower at 18,231.50 on the Singapore Exchange, signaling that Dalal Street was headed for a flat to negative start. “Nifty has reclaimed the 18,100+ zone almost after seven months and it is likely to continue this tone however we can’t ignore the possibility of an intermediate pause or dip. Besides, the upcoming events viz. the outcome of the US Fed meet and MPC’s special meet will keep the volatility high. Participants should maintain the “buy on dips” approach and stick with the sectors which are participating in the move,” said Ajit Mishra, VP – Research, Religare Broking.
Global market watch: Shares in the Asia-Pacific were mixed on Wednesday as investors brace for another likely 75 bps rate hike by the Federal Reserve. Hong Kong’s Hang Seng index slipped 0.81% in early trade after closing more than 5% higher on Tuesday. The Shanghai Composite in mainland China dipped 0.39%. In Japan, the Nikkei 225 was fractionally lower. The Kospi in South Korea reversed course to rise 0.42%. Australia’s S&P/ASX 200 traded 0.33% higher. The MSCI’s broadest index of Asia-Pacific shares outside Japan was about flat. US stocks slipped overnight as investors digested economic data ahead of an expected rate hike from the Fed later Wednesday. The Dow Jones Industrial Average shed 0.24%, while the S&P 500 lost 0.41%, and the Nasdaq Composite fell 0.89% lower.
Nifty technical view: “A small positive candle was formed on the daily chart with minor upper and lower shadow and the opening upside gap of the last two sessions remains intact. The Nifty sustained above the hurdle of 18096 levels on Tuesday, which is the previous top of mid part of Sept 22. This is a positive indication and one may expect further swing highs in Nifty,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“The candle pattern of Tuesday indicates a formation of high wave and this reflects a volatility in the market at the highs. Normally, such high wave formations at the highs/hurdles indicates caution for longs. But, still there is no confirmation of any reversal pattern unfolding at the highs. The next upside levels to be watched around 18500 and immediate support is placed at 18080 levels,” he added.
Levels to watch for: “Support for Nifty has shifted around 18000 levels while on the upside 18240 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 40500 levels while resistance at 41800 levels. Overall, traders are advised to keep a buy-on-dip approach as the index is managing to trade above the 18000 mark,” said Palak Kothari, Senior Technical Analyst, Choice Broking.
IPO Watch: Fusion Microfinance IPO will open on Wednesday (2 November) and close on Friday (4 November). For the IPO, the price band is fixed at Rs 350-368 per share. The issue comprises a fresh issue worth Rs 600 crore and an offer of sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders. Under the OFS, promoters including Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society U.A, and Global Financial Inclusion Fund will be participating. ICICI Securities, CLSA India, JM Financial, and IIFL Securities are the lead managers for the IPO.
Stocks under F&O ban on NSE: The NSE has added Punjab National Bank to its F&O ban list for 2 November. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 2,609.94 crore, whereas domestic institutional investors (DIIs) net offloaded equities worth Rs 730.14 crore on 1 November, according to the provisional data available on the NSE.
This article taken by financialexpress.com
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