What to expect from markets in today’s trading

Indian stock markets will remain open on Saturday, May 18, 2024, as both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have scheduled a special trading session. This session, focused on the equity and equity derivatives segments, aims to evaluate the exchanges’ disaster preparedness in the event of major disruptions. Earlier, a special trading session was held on March 2, 2024.

Here’s what to expect from today’s special trading session

The last three special Saturday sessions have been muted, with indices remaining in tight ranges and stock-specific action taking the spotlight due to individual news flows and actions. “Indian markets are expected to witness another less volatile session with low volumes in this special trading, similar to the last few special sessions,” said Arun Kumar Mantri, Founder of Mantri Finmart.

Trading restrictions and settlement calendar

Mantri expects broader markets to see stock-specific action today, with traders having to brace for some restrictions as before. Trading will occur in two sessions, and any open orders not executed by the end of the first session will be cancelled and not moved to the next session. There will be no intraday trading; only delivery trades will be allowed in the cash market. Additionally, circuit limits will be revised to 5 percent for stocks in the F&O segment.

Mantri noted that the settlement for trades executed on Saturday will occur on Tuesday, along with the sale proceeds, as markets remain closed on Monday due to parliamentary elections in Mumbai.

“Among the markets, the ongoing momentum in mid and small caps is expected to continue, as sentiment remains upbeat on the street. However, action in the futures and options space will depend on intraday market moves. Given the long weekend and ongoing high volatility, traders are expected to stay on the sidelines, as intraday trades are not allowed and delivery positions may remain muted,” he said.

Nifty views and levels to watch

“We expect the Nifty index to trade in a broader range of 200-300 points. On the upside, the index may rally to 22,600 and later hover around 22,500, taking support in the range of 22,450-22,460. We anticipate normal trading sentiment with mild volatility, maintaining a positive status quo,” said Avdhut Bagkar, derivatives and technical analyst at Stoxbox.

“In such an environment, traders are unlikely to take major positions or carry forward new trades. Most will prefer to stay on the sidelines, betting on intraday gains. As we approach the end of the last phase of elections, the overall trend may exhibit a sideways or consolidation pattern to reduce prevailing anxiety among the trading community,” Bagkar said.

Maintain light positions to manage volatility

Bagkar recommends maintaining light trading positions to help avoid anxiety and over-leverage. Sizeable positions with affordable hedges could help traders survive the current uncertainty.

Timings: May 18 live trading session

The primary session for the cash market will commence with the morning block deal window from 8:45 am to 9:00 am, followed by the pre-open session from 9:00 am to 9:08 am. Regular trading for the primary session will run from 9:15 am to 10:00 am, followed by a break until 11:15 am.

For the second session at the disaster recovery site, the pre-open session will run from 11:15 am to 11:23 am, with normal trading scheduled from 11:30 am to 12:30 pm. Post-close order closing and modifications will be allowed until 1:00 pm.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.