On Tuesday morning, SGX Nifty was up 89 points, hinting at some positive momentum ahead of the day’s opening bell.
Domestic benchmark indices started the week on a positive note on Monday while broader markets continued to correct with midcap and smallcap indices closing with losses. Currently, S&P BSE Sensex sits at 55,555 while the NSE Nifty 50 is at 16,496. Bank Nifty sits at 35,124 — gaining 0.26% yesterday. On Tuesday morning, SGX Nifty was up 89 points, hinting at some positive momentum ahead of the day’s opening bell. Cues from global peers were positive as Asian markets mirrored gains recorded by Wall Street equity indices during the previous session.
Global watch: On Wall Street, benchmark indices closed with gains on Monday. Dow Jones jumped 0.61% while S&P 500 gained 0.85%. The tech-heavy NASDAQ was the best performer, zooming 1.55%. Among Asian markets, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all trading with gains.
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Technical take: Although domestic benchmark indices closed with gains, Nagaraj Shetti, Technical Research Analyst, HDFC Securities sees signs of concern. “A reasonable negative candle was formed with minor lower shadow. Technically, this pattern indicates a lack of strength to sustain the highs. Though Nifty closed higher on Monday, the overall market breadth was sharply negative and broad market indices like mid-cap and small-cap segments have continued to bleed. This is not a good sign, as it reflects inherent weakness in the market,” he said.
Levels to watch out for: Yesterday’s rally might have been a relief rally, according to analysts. “Technically, on intraday charts, the index has formed a double bottom formation. We are of the view that the 10 day SMA or 16450 would be the immediate support for the bulls. As long as it is trading above the same, an upside could lift the index up to 16550,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. Slipping below 16450 could send the index back to 16350-16300 levels.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stocks for the fifth consecutive trading session on Monday. FIIs sold Rs 1,363 crore worth of equities. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 1,452 crore on Monday.
IPO watch: Shares of Aptus Value Housing and Chemplast Sanmar will ist on the bourses today. The listing of the two stocks could be muted as has been the recent trend. The previous two listings on Dalal Street have seen the stocks plummet below the IPO price band on the opening day of trade.