Indian share markets are likely to start the new year on a tepid note. Benchmark indices are expected to open on a muted note amid weak global cues. In the previous session, BSE Sensex fell 293 pts to 60,841, while NSE Nifty 50 declined 86 pts to 18,105. “The recent consolidation in the Nifty index is largely in line with the global counterparts however certain themes and sectors are doing well. And, participants should focus on identifying such themes and aligning their positions accordingly. Besides, the key is to manage overnight risk citing the prevailing volatility,” said Ajit Mishra, VP – Technical Research, Religare Broking Ltd.
Key things to know before market opening bell
Global market watch: Global cues are weak as most Asian markets are closed for New Year’s holiday. Meanwhile, US markets slipped in the previous session to end a brutal 2022 with a whimper. Wall Street wrapped up its worst year since 2008 on a sour note, capping a year of sharp losses driven by aggressive interest rate hikes to curb inflation, recession fears, the Russia-Ukraine war and rising concerns over Covid cases in China. The Dow Jones Industrial Average fell 0.22% to 33,147.25, the S&P 500 lost 0.25% to 3,839.50, and the Nasdaq Composite dropped 0.11% to 10,466.48. Wall Street’s three main indices booked their first yearly drop since 2018.
Key levels to watch: “Volume profile indicates Nifty index may find further support around 17900-18000 zone. Coming to the OI Data, on the call side, the highest OI was observed at 18200 followed by 18300 strike prices while on the put side, the highest OI was at 18000 strike price. On the other hand, Bank Nifty has support at 42500-42600 while resistance is placed at 43400-43500 range,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.
FII and DII data: Foreign institutional investors (FII) net offloaded shares worth Rs 2,950.89 crore, while domestic institutional investors (DII) net bought shares worth Rs 2,266.20 crore on 30 December, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for 2 January. Securities banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
Fiscal deficit widens: The Central government’s fiscal deficit widened to Rs 9.78 lakh crore in the April-November period, accounting for 58.9% of the full-year target, according to the official data. The fiscal deficit in the first eight months of the last financial year was 46.2% of last year’s target. The total receipts during April-November stood at Rs 12.24 lakh crore or 63.3% of the current year’s budget estimate. In the comparable year-ago period, total receipts had hit 73.5% of the budget estimate.
Core sectors’ growth quickens: India’s eight core sectors grew 5.4% in November, quickening from 3.2% growth in the same month last fiscal, the commerce ministry said in a statement on 30 December. The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). The October core industries growth has been revised higher to 0.9% from 0.1% earlier, while the final growth rate of eight core for August was revised to 4.2% from its provisional level 3.3%, the ministry stated.