Nifty’s short-term trend to be range-bound; 5 things to know before today’s opening bell

01 Apr , 2022 By : monika singh

Domestic benchmark indices snapped their gaining streak on the futures & options expiry session on Thursday. S&P BSE Sensex fell 115 points or 0.20% to settle at 58,568 while the NSE Nifty 50 index was down 33 points or 0.19% at 17,464. The volatility gauge cooled down further to sit just above 20 levels. Ahead of the final trading session of the week, SGX Nifty was in the red, suggesting a gap-down start to indices. Global cues were also weak after Wall Street indices ended with losses. Investors continue to gauge the impact of crude oil prices, Russia Ukraine war and rising interest rates on equities.

Global cues: On Thursday, Wall Street saw S&P 500 fall 1.57%, followed by Dow Jones and the NASDAQ index. Among Asian peers, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all in red.

Technical Take: Snapping its gaining streak, the Nifty 50 formed a small negative candle on the daily chart with minor upper and lower shadow, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a range bound action in the market. After an attempt of an upside breakout of an immediate hurdle of 17500 levels (previous swing high of 16th Feb), the market failed to sustain the highs and slipped into minor weakness,” he added.

Levels to watch out for: Nifty index finds support at 17400, according to Palak Kothari, Research Associate, Choice Broking, who suggests 17600 may act as an immediate hurdle for the index. On the other hand, Nagaraj Shetti still sees Nifty’s short-term trend to be range-bound with a continuation of a downward trend for 1-2 sessions before showing another round of upside bounce.

FII and DII trades: Foreign Institutional Investors were net buyers of domestic equities for the third day running. FIIs pumped in Rs 3,088 crore into D-Street on Thursday. Domestic Institutional Investors (DII) were also net buyers, pushing in Rs 1,145 crore.

Call and Put OI: For the next weekly F&O series, maximum call Open Interest (OI) is placed at 17500 strike followed by 18500 strike. On the other hand, Call OI is the most at 17500 strike.