Domestic stock markets return to action today after a day’s hiatus. So far this week, bulls have been in control on Dalal Street pushing benchmark indices higher. S&P BSE Sensex is currently placed at 58,853 points adding 465 points or 0.80% on Monday while NSE Nifty 50 is at 17,525, up 127 points or 0.73%. India VIX is again on its way up, sitting above 19 levels. Entering Wednesday’s trade, SGX Nifty was down with losses, suggesting a weak to flat opening for domestic markets. Global cues were weak after Wall Street closed in the red on Tuesday.
Global Watch: On Tuesday, NASDAQ dived 1.19% followed by a 0.42% drop in S&P 500 and 0.18% fall in Dow Jones. US stock markets moved lower ahead of inflation data. Asian stock markets mirrored the move with Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KSODAQ all trading in the red.
What do the charts say: On Monday, a long bull candle was formed on the daily Nifty charts, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that this candle is placed at the upper end of the short-term high low range of 17200-17500 levels of the last 4 sessions. “Technically, this pattern suggests a decisive upside breakout of the range at 17500-17550 levels. This is a positive indication and signals more upside for the short term,” Shetti said.
Levels to watch out for: “On the higher side, the trendline resistance will be the immediate zone to watch out on the higher side which is around 17700-17750 while the support base has now shifted higher to 17350-17300 range,” said Ruchit Jain, Lead Research, 5paisa.com. He advises trader with long positions to now trail their stop loss higher to 17300 and also advises profit booking at higher levels. Meanwhile, Nagaraj Shetti sees resistance at 17800-17900 levels in the near term with immediate support at 17430 levels.
FII and DII trades: Foreign Institutional Investors (FII) have been buying domestic stocks for 8 consecutive days now. On Monday, FIIs pumped in Rs 1,449 crore into Dalal Street. Domestic Institutional Investors (DII), however, have been net sellers. DIIs sold shares worth Rs 140 crore on Monday.
Call and Put OI: For the August series, Call open interest (OI) is the highest at 18000 strike, followed 17500 strike. On the other hand, Put OI is the most at 16500 strike, followed by 17000 strike.