Nifty resistance, stocks under F&O ban, Q3 results; things to know before market opening bell

Bulls managed to remain triumphant on Budget 2022 day even as markets witnessed high volatility on Tuesday, with Nifty swinging between gains and losses in a 380 points range. Benchmark indices BSE Sensex and Nifty50 crossed 59,000 and 17,600 intraday before closing higher at 58,862.57, up 848.40 points or 1.46%, and 17,576.80, up 237 points or 1.37% respectively. Indian equity markets are likely to have a gap-up start on Wednesday as early trends on SGX Nifty hinted at a positive start with a gain of 118.50 points or 0.67 percent. The Nifty futures were trading around 17,716 level on the Singaporean Exchange.

“We expect the market to take the budget positively as it largely remained growth focused and despite several upcoming state elections, the government didn’t resort to populist measures. From a sector perspective, we expect Infra, construction, cement, capital goods, affordable housing, logistics and Defence to be major beneficiaries and remain in focus,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Things to know before market opening bell

Global cues: Markets in Asia rose in Wednesday morning trade, with multiple major markets remaining closed in the region for the Lunar New Year holidays. Japan’s Nikkei 225 gained 1.05%, while the Topix index advanced 0.97%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.27% higher. Markets in mainland China, Hong Kong, Singapore and South Korea are closed today for the Lunar New Year holidays. Meanwhile, overnight stateside, all these major Wall Street indices rose for a third day. The Dow Jones Industrial Average jumped 273.38 points, S&P 500 climbed 0.69% and the Nasdaq Composite edged 0.75% higher.

Nifty technical view: “The sharp upside momentum continued in the market around the key economic event of Union Budget 22 on Tuesday, as Nifty displayed high volatility and finally closed the day higher by 237 points. After opening on a positive note, the market shifted into a gradual upmove for better part of the session. The volatility has started after the presentation of the Union Budget in the Parliament. Sharp intraday dip of mid part has been absorbed and the market closed the day at the highs,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

“A small positive candle was formed on the daily chart with long lower shadow. Technically this pattern indicate high volatility in the market with positive bias. Formation of long lower shadow on the daily chart signal a sharp upside recovery in the market from the lows. This is positive indication and one may expect further upside in the market,” Shetti added.

Key support, resistance levels for Nifty: Nifty ended in the positive boosted by growth inducing measures of the Union Budget. Advance decline ratio also remained in the positive. Markets are enthused by the credible conservative estimates in the Budget. However high inflation and interest rates remain the two spoilsports. 17745-17805 could be the next resistance for the Nifty while 17374-17410 could be the support, said Deepak Jasani, Head of Retail Research, HDFC Securities.

Nifty Call, PUT OI: Maximum Call open interest of 21.75 lakh contracts was seen at 18,000 strike, followed by 17,500 strike (14.38 lakh contracts), and 18,500 strike (13.51 lakh contracts). Maximum Put open interest of 41.33 lakh contracts was seen at 16500 strike, followed by 17000 strike (26.68 lakh contracts), and 17500 strike ()20.13 lakh contracts.

FII and DII data: Foreign institutional investors (FIIs) offloaded shares worth Rs 21.79 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,597.70 crore in the Indian equity markets on Monday (1 February), according to the provisional data available on the NSE.

Q3 Results today: HDFC, Adani Green Energy, Dabur India, Aarti Surfactants, Apollo Tyres, Adani Total Gas, Bajaj Consumer Care, Balaji Amines, Balrampur Chini Mills, Blue Star, eClerx Services, Gillette India, Indian Overseas Bank, JK Lakshmi Cement, Jubilant FoodWorks, Mahindra & Mahindra Financial Services, Meghmani Organics, Sandhar Technologies, Shankara Building Products, Suryoday Small Finance Bank, Tata Consumer Products, Timken India, VRL Logistics, Windlas Biotech, Zee Entertainment Enterprises, and Zydus Wellness will release quarterly earnings on Wednesday.

Stocks under F&O ban on NSE: Since it is the beginning of February series, there is no stock under F&O ban for February 2. If the open interest of any stock crosses 95% of the MWPL (market-wide positions limits), all F&O contracts of that stock enter a ban period on the National Stock Exchange.