Charts suggest more upside for Nifty while it holds above 17400; 5 things to know before today’s opening

Domestic equity indices extended their up-move on Wednesday with benchmark indices and the broader markets closing with gains. S&P BSE Sensex jumped 740 points or 1.28% to settle at 58,683 while the NSE Nifty 50 index zoomed 173 points or 1% to close the day at 17,498. Technical analysts believe there is more upside to benchmarks with support levels moving higher. Entering the monthly futures & Options expiry, SGX Nifty was sitting in the green, suggesting a positive start. Global cues were mixed as Wall Street indices ended with losses. 

Global watch: On Wall Street, the NASDAQ index fell 1.21%, followed by S&P 500 and the Dow Jones. Among Asian peers, Shanghai Composite was in the red along with Hang Seng but Nikkei 225, TOPIX, KOSPI, and KOSDAQ were up with gains. 

Technical take: With continued upward momentum, the Nifty 50 index formed a small bull candle on the daily chart, said Nagaraj Shetti, Technical Research  Analyst, HDFC Securities. He added that the chart formation signals continuation of upside momentum in the market. “The formation of lower shadows in the last three daily candles indicate buy on intraday dips opportunity in the market.”

Levels to watch out for: Benchmark indices seem to be trading near crucial zones at this juncture, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. “We are of the view that as long as the Nifty is trading above 17400, the breakout structure is likely to persist till 17600-17645. On the flip side, below 17400, the index could retest the level of 17350-17265,” he added. Meanwhile, Nagaraj Shetti of HDFC Securities believes 17800-18000 could be near-term targets.

FII and DII trades: Foreign Institutional Investors (FII) were net buyers of domestic stocks on Wednesday, pumping in Rs 1,357 crore. FIIs have been net buyers for two consecutive days now. Domestic Institutional Investors (DII) were also net buyers on Wednesday, buying stocks worth Rs 1,216 crore. 

Call and Put OI: For the March Futures & Options series that expires today, maximum call Open Interest (OI) continues to be placed at 18000 strike, followed by 17500. On the other hand, most Put OI for the series is at 17000 strike, followed by 16500.