Domestic headline indices look to enter the new week of trade after a long break and on the back of gains. S&P BSE Sensex settled at 59,462 on Friday, adding 130 points or 0.22%. NSE Nifty 50 soared 39 points or 0.22% to close at 17,698. India VIX, the volatility gauge, has slumped, falling 4% on Friday to settle at 17.6 levels. Now, ahead of Tuesday’s trade, SGX Nifty was up with gains suggesting favourable momentum build-up, signalling a flat to positive start to the day’s trade. Global cues were also positive after Wall Street equity indices closed with gains the previous session.
Global watch: On Wall Street, NASDAQ zoomed 0.62% on Monday, followed by a 0.40% up-move by S&P 500 and 0.45% by Dow Jones. Among Asian peers, Shanghai Composite. Hang Seng, Nikkei 225, KOSPI, and KOSDAQ were all in the green. TOPIX struggled in the red.
What do the charts say: On Friday, the Nifty 50 index formed a small positive candle on the daily chart with minor upper and lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a formation of high wave type candle pattern. Having formed this pattern within a narrow range movement, the predictability of this pattern could be less. However, the action of high wave display high volatility in the market,” he added.
Levels to watch out for: “Short-term traders must liquidate some positions and wait for dips to enter,” said Apurva Sheth, Head of Market Perspectives, Samco Securities. “.Immediate resistance is located around 17,800, while 17,600 serves as a decent support,” Seth added. Meanwhile, Nagaraj Shetti believes that the short-term trend of the Nifty continues to be positive with range-bound action. “One may expect continuation of choppy movement for the early next week and Nifty could possibly reach upside of around 17800-17900 levels by next week. Having placed at the hurdle, bulls needs to be cautious and long positions to be protected with proper stop-losses. Immediate support is placed at 17560 levels,” he said.
FII and DII trades: Dalal Street has been buoyed by the return of Foreign Institutional Investors (FII) this month. On Friday FIIs had pumped in Rs 3,040 crore into domestic stocks. Domestic Institutional Investors (DII) have, however, stopped their relentless buying. DIIs pulled out Rs 839 crore from domestic markets.
IPO watch: Syrma SGS Technology Limited’s IPO has been subscribed 0.37 times so far. The IPO opened for subscription on August 12. Retail investors are leading the bidding for the company with 0.69% portion subscribed. The issue will close on Thursday.