SGX Nifty hints at positive start; 6 things to know before the opening bell on Dalal Street today

Sensex and Nifty stare at a positive start to the day’s trading session as global markets gear up for the US Presidential elections. Sensex and Nifty enter Tuesday’s trading session after gaining nearly 0.30% on Monday. SGX Nifty was trading 100 points higher while cues from Asian markets were positive as well. Shanghai Composite was up 0.61% while Hang Seng was seen surging 1.57%. Stock markets in South Korea were close to 2% higher on Tuesday morning. 

On the technical front, Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, “Minor negative candle was formed with a long lower shadow, which indicates an emergence of buying from the lower levels. We observe back to back formation of two identical candle patterns in the last two sessions. These patterns have formed just below the key overhead resistance of 11750 levels. This action could signal that the bulls are preparing to surpass the hurdle shortly.” He added that the short term trend of Nifty is range bound with positive bias. 

Call and Put option data: For the November series maximum call open interest is placed at 12,500 strike with 15.55 lakh contracts, followed by 15.26 lakh contracts at 12,000 strike. Put OI is the most at 11,000 strike with 26.44 lakh contracts, and then at 11,500 strike with 21.08 lakh contracts.

Support and resistance levels: On the upper side 11800-11850 is going to be the next resistance and immediate support is placed at 11550, according to Nagaraj Shetti. Meanwhile, for Sumeet Bagadia, Executive Director, Choice Broking, good support is at 11500-11550 levels while resistance comes at 11750-11800 levels.

FII and DII data: On Monday, Foreign Institutional Investors (FII) bought domestic equities worth Rs 740 crore and index futures worth Rs 1,226 crore. They sold index options worth Rs 1,753 crore. Domestic Institutional Investors were net sellers of Rs 534 crore worth of stocks.

Manufacturing PMI at a high: October was a month of strong rebound for the manufacturing sector in India. Output soared to a 13-year high while sales were up to a 12-year high. Manufacturing PMI jumped to 58.9 last month, recording its strongest improvement in a decade. 

US Elections: The United States of America heads into the Presidential Elections today which is an event that has kept global markets turbulent over the past few weeks. The results will not be known immediately this time owing to the pandemic but the fight for the Oval Office is likely to get a lot of attention from investors.

Results today: Adani Gas, Adani ports and SEZ, Ajanta Pharma, Dabur India, Godrej properties, JSW Energy, Kansai Nerolac, PVR, and Sun Pharma are some of the companies that will announce their quarterly earnings today.