SGX Nifty indicates a positive opening for Indian indices
The benchmarks indices snapped their three-day rising streak and ended almost flat after a volatile session on Tuesday.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 45 points at the opening bell. Overseas, Asian stocks traded mixed on Wednesday trade, as data showed Japan’s economy grew faster than previous estimates. Japan’s economy grew faster than initially estimated in the April-June quarter. Revised gross domestic product (GDP) data by the Cabinet Office released on Wednesday showed the economy grew an annualised 1.9% in April-June, from an initial estimate of a 1.3% expansion.
In the US, the Dow Jones and S&P 500 fell on Tuesday, on concern that the delta coronavirus variant is slowing the economic recovery from the pandemic.
Domestic markets: Back home, the benchmarks indices snapped their three-day rising streak and ended almost flat after a volatile session on Tuesday. The barometer index, the S&P BSE Sensex, shed 17.43 points or 0.03% to 58,279.48. The Nifty 50 index lost 15.70 points or 0.09% to 17,362.10. Foreign portfolio investors (FPIs) sold shares worth Rs 145.45 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 136.57 crore in the Indian equity market on 7 September, provisional data showed.
Market outlook
Chandan Taparia, vice president, analyst-derivatives, Motilal Oswal Financial Services said, “Nifty formed a small bearish candle on daily scale as it closed with marginal losses and negated higher highs – higher lows formation of last seven sessions. Now it has to continue to hold above 17,300 zones to extend the move towards 17,500 and 17,777 zones while on the downside support is seen at 17,200 and 17,050 levels.”
India VIX fell down by 1.36% from 15.10 to 14.89 levels. Rise is volatility from lower zones is a cause of volatile swings in the market. He further added that India VIX needs to hold below 13 zones to continue the bullish momentum.
On the option front, Maximum Put OI is at 17,000 followed by 16,500 strike while maximum Call OI is at 17,500 followed by 17,400 strike. Call writing is seen at 17,400 then 18,000 strike while Put writing is seen at 17,400 then 17,000 strike. Option data suggests a broader trading range in between 16,800 to 17,800 zones while an immediate trading range in between 17,100 to 17,500 zones.
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