Bulls to stage a comeback or bears to drag Nifty below 16750? 5 things to know before market opening bell

Indian share market is likely to open higher in the green as trends in the SGX Nifty hinted at a positive opening for domestic equities. In the previous session, the 30-pack BSE Sensex tumbled 638.11 points or 1.11% to settle at 56,788.81, and the broader NSE Nifty fell by 207 points or 1.21% to end at 16,887.35. According to analysts, any sustainable move below 16750 levels on Nifty could bring sharp negative momentum on the cards. On the upside, 17060-17100 could act as a strong hurdle for the short term. The next important support for the index is placed at 16750 levels.

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Things to know before share market opening bell

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Global Markets: Asian markets traded higher today morning after stocks on Wall Street rallied overnight. Japan’s Nikkei 225 rose 2.19% in early trade, while South Korea’s Kospi advanced 1.81%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.71%. Markets in mainland China and Hong Kong are closed for a holiday. Meanwhile, in the US, the Dow Jones Industrial Average jumped 2.7%, the S&P 500 advanced about 2.6%, and the Nasdaq Composite added nearly 2.3%.

Nifty technical view: “A long bear candle was formed on the daily chart, that has engulfed more than half way mark of previous long bull candle of Friday. Technically, this pattern indicates a lack of strength to sustain the upside bounce in the market and the crucial lower support of 16750-16800 levels could be tested again. This is negative indication. Hence, a decisive slide below 16750 levels is likely to negate the bullish pattern created on Friday’s upmove and that could eventually result in further strengthening of downside momentum in the market. The short-term trend of Nifty remains weak,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “On the derivatives front, the highest call OI is at 17000 followed by 17100 strike price while on the put side, highest OI remains at 16500 strike price. Nifty Bank has witnessed continuous selling pressure and closed below the support of 38500. This indicates further bearishness in the near term. The index remains in a sell-on-rise mode with multiple hurdles at 39000-39500 where fresh call writing has been observed. The next crucial support on the downside is placed at 36600 which coincides with its 200 DMA,” said Om Mehra, Technical Associate, Choice Broking.

IPO Watch: Consumer durables and electronics retailer Electronics Mart India’s initial public offer (IPO) to open for subscription on 4 October and close on October 7. The price band for the offer has been fixed at Rs 56-59 per share. The company has mopped up Rs 150 crore through its anchor book, ahead of the opening of its initial public offer (IPO). The company has finalised the allocation of 2.54 crore equity shares to anchor investors at a price of Rs 59 per share, as per the filing with the exchanges.

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Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for 4 October. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.