On Wednesday morning, SGX Nifty was down in the red, hinting at some turbulence for domestic equities.
Domestic equity benchmark indices scaled fresh all-time highs on Tuesday, as bulls continued to dominate the market movement. S&P BSE Sensex ended the day at 52,773 while the 50-stock NSE Nifty closed the day at 15,869. On Wednesday morning, SGX Nifty was down in the red, hinting at some turbulence for domestic equities. Global cues were mixed during the early hours of trade. “Further direction of the domestic markets would depend on the monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Global cues: On Wall Street, NASDAQ fell 0.71%, followed by Dow Jones and S&P 500 as the benchmark indices gave up their three-day gaining streak. Among Asina peers, Shanghai Composite, Hang Seng, and Nikkei 225 were down in the red. TOPIX, KOSPI, and KOSDAQ were up with gains.
Technical take: Nifty reached an all-time high of 15,901 on Tuesday and formed a small body candle at the highs, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This candle pattern signal a formation of doji type pattern (not a classical one) at the new highs. This pattern again raises concern for bulls to sustain the higher levels,” he added.
Levels to watch out: Charts believe that Nifty could near 16,000 soon. The index has shown sort of profit booking from its strong hurdle zone of 15900 which will continue to act as resistance for the coming session also followed by 16k mark, said Rohit Singre, Senior Technical Analyst at LKP Securities. Meanwhile, Nagaraj Shetti believes there is a chance for further consolidation or minor weakness from the highs in the next 1-2 sessions with immediate support at 15700.
FII and DII trades: Foreign institutional investors were net buyers of domestic stocks worth Rs 633 crore while domestic institutional investors (DII) were net sellers once again, of securities worth Rs 649 crore.
IPO watch: Today is the last day to bid for the IPOs of Sona BLW Forgings and Shyam Metalics. So far, Sona BLW’s IPO has been subscribed 0.27 times by investors. Meanwhile, Shyam Metalics, after being oversubscribed on day-1 has been subscribed 3.65 times overall. The primary market will today witness the public offerings of KIMS and Dodla Dairy open for subscription.