Will bulls take a backseat as bears drag Nifty below 17800? 5 things to know before market opening bell
Bulls are likely to take backseat on Friday as SGX Nifty hinted at a negative start for Indian equities. Nifty futures traded 111 points, or 0.62% lower at 17,768 on the Singapore Exchange, signaling that NSE Nifty 50 and BSE Sensex were headed for a negative start. “We broadly remain positive on the markets and suggest buying on dips. Nifty trades with a positive bias on monthly basis but short term momentum indicators suggest some jitters. This could result in a phase of correction/consolidation. IT and select BFSI stocks remain attractive while Banking can witness some profit booking,” said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.
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Technical view: “A long negative candle was formed on the daily chart, that has engulfed the long bull candle of Wednesday on the downside. Technically, this market action signal emergence of selling pressure at the resistance of 18100 levels. On the downside, the Nifty is expected to find support around 17750-17700 levels in the short term. The short-term trend of Nifty continues to be range bound around 18100-17700 levels. There is a possibility of further consolidation or minor downward correction in the short term,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch for: “The trading set up suggests that a fresh round of selling is possible only after the dismissal of 17800 support level. If the index trades above 17800 then it could retest the level of 18100- 18150. On the flip side, below 17800, a quick intraday correction is not ruled out. Below which, it could slip till 17700-17650,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Bank Nifty has support at 40700 levels while resistance at 41700 levels, according to technical charts.
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Stocks under F&O ban on NSE: Indiabulls Housing Finance and RBL Bank are the two equities under the NSE F&O ban list for September 16. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
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