Will bulls push Nifty towards 18000 or correction on cards? 5 things to know before market opening bell

Indian share market is expected to open higher on Thursday, hinted SGX Nifty. Ahead of the session, Nifty futures were trading 86 pts or 0.5% higher at 17900 on the Singapore Exchange, signalling a positive start for domestic equities. In the previous session, market closed half a percent lower the previous day, snapping a seven-day winning streak in the run-up to monthly futures and options (F&O) contracts expiry on 27 October. The Sensex closed 288 points lower at 59,544, while the Nifty declined 75 points to 17,656. While analysts expect some consolidation in markets ahead, the tone is expected to remain positive.

Also Read: Indus Towers, Dabur India, Zee, SBI Cards, Tata Chemicals, Route Mobile stocks in focus on 27 October 2022

Nifty technical view: “Zooming into 15 minute chart, we see that Nifty opened higher, but selling pressure emerged from the highs and pulled the index lower thereby erasing the morning gains. The Nifty nevertheless remains in a short term uptrend as it has moved above the previous swing highs of 17429 and made higher bottoms over the last few weeks. While the Nifty looks set to move higher towards the previous intermediate highs of 18096, the index could witness a mild correction in the very near term. It is important that the Nifty can hold above the immediate supports of 17607-17503 for the uptrend to continue,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.

Levels to watch for: The key support for Nifty is placed at 17,635, followed by 17,594 and 17,527. If the index moves up, key resistance levels to watch out for are 17,768, 17,809 and 17,876. Meanwhile, the important pivot level, which will act as crucial support for Bank Nifty, is placed 41,030, followed by 40,910 and 40,716. On the upside, key resistance levels are 41,419, 41,540 and 41,734.

FII and DII data: Foreign institutional investors (FIIs) net offloaded shares worth Rs 247.01 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 872.88 crore on 25 October, according to the provisional data available on the NSE.

Also Read:Dabur acquires 51% stake in Badshah Masala for Rs 587.52 crore

Stocks under F&O ban on NSE: BHEL and Punjab National Bank are the two stocks on the NSE F&O ban list for 27 October. Securities banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit. During the ban, traders are not allowed to take fresh positions in stocks but can start reducing their positions. The F&O ban rule helps reduce speculation in stocks.