On rises, Nifty could face resistance from the 16837-16900 band, while 16410 could offer support in the next few days. The sharp comeback of market in previous session could be a cheering factor for bulls to make a comeback.
Indian equity markets may see a flat to gap-up opening ahead of Monday's trading session, SGX Nifty was in the green, indicating some positive momentum for the domestic markets. “While a pullback has been observed in the markets – volatility is expected to remain high in the next few days. The market will keep a close eye on the ongoing Russia Ukraine conflict over the weekend for any further indications. In the near term, Thursday's low of 16200 could act as a strong support. While traders need to beware of sharp volatility, investors can use the current fall to gradually add quality blue chip companies to their portfolios.
Key things to know before trading today
Global cues: Global cues are largely positive after Wall Street indices closed the previous session in green. Among Asian peers, Japan's Nikkei fell 0.28%, while Topix was nearly flat. Shanghai Composite fell 0.54% and Shenzhen Component fell 0.76%. Hong Kong's Hang Seng Index dropped 0.87%. Meanwhile in South Korea, Kospi erased losses by 0.14% and Kosdaq gained 0.49%. In the US, Wall Street bounced back on Friday, as three of Wall Street's major indices ended 1.6-2.5 per cent higher.
Nifty Technical Take: A proper bull candle was formed on the daily chart, which at least indicates a bullish return for the bulls. This pattern has partially erased Thursday's losses. After a decisive negative breakout of the 16700-16800 level of the uptrend line (connected rising swing low) and important supports like the 200 day EMA, the market maneuvered back in the subsequent session and is now placed at the previous breakout point. Nagraj Shetty, Technical Research Analyst, HDFC Securities, said the sharp rally in the market on Friday could be a turning point for the bulls.
Nifty Support, Resistance Level to Watch: While developments on Russia Ukraine front will continue to influence market directions, supply disruptions and resumption of commodity inflation will hurt many economies at a time when they start to recover post Were. Omicron threat. Deepak Jasani, Head of Retail Research, HDFC Securities said Nifty may face resistance from the 16837-16900 band, while 16410 may offer support in the next few days.
FII and DII data: Foreign institutional investors (FIIs) sold shares worth a total of Rs 4,470.70 crore on Friday (February 25). However, as per provisional data available on NSE, domestic institutional investors (DIIs) made net purchases of Rs 4,318.2 crore.
Stocks under F&O restrictions on NSE: Since this is the beginning of the March series, there are no stocks under F&O restrictions for February 28. Securities in the embargo period under the F&O clause include companies in which the security has exceeded 95 percent of the market-wide position limit.
Call, Put OI Data: Maximum call open interest accumulated at 17000 strike with 18.74 lakh contracts. This is followed by 18000 strike, with 18.56 lakh contracts, and 17500 strike, with 16.25 lakh contracts. Maximum put open interest was seen at 16500 strike with 50.22 lakh contracts, followed by 16000 strike, which has 42.02 lakh contracts, and 15500 strike, with 34.80 lakh contracts.