Will bears drag Nifty to 17150 or bulls stage a comeback? 5 things to know before market opening bell

Posted on by

Indian equity markets are likely to extend losses on Monday as SGX Nifty was in red ahead of the session, hinting at a negative start for domestic benchmark indices NSE Nifty 50, and BSE Sensex. Global cues are expected to dominate this week, but RBI policy and September F&O expiry will lead to volatility in markets, according to analysts. “Nifty fell sharply for the second consecutive week (down 1.16%), breaking some key technical levels on the way. 17166 is the next support for the Nifty, post which a sharper fall could ensue. 17490 could be the resistance for the Nifty in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Also Read: Harsha Engineers, Britannia, Embassy REIT, Coal India, BPCL, State Bank of India stocks in focus

Nifty technical view: “On the technical front, the Nifty formed a bearish candle on a daily chart as well as trading below 21 DMA which adds bearishness to the prices. Nifty has given a breakdown of the horizontal line and given closing below the same which adds bearishness to the prices. On the OI Data, On the call side, the highest was witnessed at 17600 while on the put side was at 17000 level. The daily momentum indicator MACD was trading with a negative crossover which points out the weakness in the counter,” said Palak Kothari, Senior Technical Analyst, Choice Broking.

Nifty, Bank Nifty levels to watch for: “The support for nifty has shifted around 17150 levels while on the upside 17700 may act as an immediate hurdle. On the other hand, Bank nifty has support at 39000 levels while resistance at 40800 levels. Overall, the Nifty is looking weak on charts that can test the 17150 level in the upcoming week closing above 17700 can show an upside rally. Selling on rising is advisable for the upcoming session,” Kothari added.

IPO Watch: Harsha Engineers shares will debut on stock exchanges on Monday. Ahead of the listing, Harsha Engineers shares commanded a grey market premium of Rs 170. The Rs 755-crore IPO was bought 74.7 times by participants. Meanwhile, Isolation Energy, and Concord Control Systems companies set to launch their initial public offering IPO this week. Post IPO issue, the company’s equity shares are proposed to list on BSE’s SME platform. The public offer will be available only on BSE for subscription.

Also Read: Rupee to depreciate on strong dollar; falling crude prices may cap downside, USDINR to trade in this range

Stocks under F&O ban on NSE: The National Stock Exchange has added Vodafone Idea and Zee Entertainment Enterprises to its F&O ban list, taking the total stocks in the F&O ban list to six for September 26 (Monday). Ambuja Cements, Can Fin Homes, Delta Corp, and Punjab National Bank remained under the ban list. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market-wide position limit.