Sensex, Nifty may open muted; 5 things to know before opening bell on Dalal Street today

While Uncle Sam counts ballots to find out who will be sitting in the Oval Office from January, Asian stock markets have seen a flat to positive start. Sensex and Nifty enter the day’s trade with eyes glued to the US Presidential Election and a two-day gaining streak. Sensex sits at 40,261 points while Nifty 50 is above the 11,800 mark. Volatility is expected to be high during the day. Stock markets in the US ended with gains yesterday with Dow Jones jumping over 2%. Among Asian peers Shanghai Composite was flat along with Hang Seng. Nikkei 225 and TOPIX were up over 1% each while KOSPI and KOSDAQ were trading with gains.

“Initial resistance of 11750 levels has been broken on the upside and Nifty has sustained above it. The next important resistance is placed at 11930-11950 levels, which is an upper area of the recent consolidation,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that Nifty could touch the upside resistance levels in the coming sessions. However, keeping in mind the US elections, analysts have advised investors to not take undue risks. 

US Elections: Counting is underway in the United States of America with initial trends suggesting that key states are too close to call for now. Results will take longer than usual owing to the pandemic. Eyes will be glued on to who will win the race and how the next few days pan out.

Call and Put data: Maximum call Open Interest (OI) is placed at 12,000 strike with 15.04 lakh contracts, followed by 14.35 lakh contracts at 12,500 strike. Put OI is the most at 11,000 strike with 24.85 lakh contracts. 

Support and resistance levels: “The immediate supports for Nifty for the coming session are placed around 11745 and 11670 whereas resistances are seen around 11930 and 11970,” said Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking. Meanwhile, Sumeet Bagadia, Executive Director, Choice Broking said that Nifty has strong support at 11700 to 11550 while upside resistance comes at 11900-12050 levels.

FII and DII data: On Tuesday, Foreign Institutional Investors (FII) bought domestic securities worth Rs 2,274 crore. On the other hand, Domestic Institutional Investors (DII) pulled out Rs 1,100 crore.

Global watch: Dow Jones was up over 2% yesterday while NASDAQ and S&P 500 followed closely behind. European markets too ended with gains. In Asia Shanghai Composite and Hang Seng were flat but equity markets in Japan were inching higher with gains along with South Korean markets.