On Tuesday morning, SGX Nifty was down with marginal losses, signalling some negative momentum ahead of the opening bell.
Domestic equity markets saw a volatile trading session on Monday, slipping from intra-day highs to closed with a negative bias. S&P BSE Sensex was down 189 points on the closing bell at 52,735 while the Nifty 50 index ended 45 points lower at 15,814. On Tuesday morning, SGX Nifty was down with marginal losses, signalling some negative momentum ahead of the opening bell. Cues from global peers were mixed. On the charts, Nifty stook looks strongly placed. “The long term chart like weekly signal intact of the uptrend and there is no sign of any reversal pattern developing at the new highs,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: Wall Street stock markets closed mixed with Dow Jones in the red while S&P 500 and NASDAQ gained. Among Asian peers, Hang Seng, Shanghai Composite, Nikkei 225, KOSPI, and TOPIX were in the red. Only KOSDAQ was up with gains.
Technical take: “A reasonable negative candle was formed with minor lower shadow. Technically, this pattern signal minor profit booking from the new highs,” Nagaraj Shetti said. He, however, added that the overall market breadth was positive and broad market indices like mid and small-cap segments of NSE closed in the green, which is a positive indication.
Levels to watch out for: Nifty has held above support levels in the last few trading sessions. “We are of the view that, as long as the Nifty/ Sensex is trading above 15750 /52550 the uptrend texture should intact. We can expect an uptrend continuation wave up to 15900- 15950/ 53100-53500. On the flip side, below 15750/ 52550 would increase further weakness up to 15700-15660/ 52000-51700,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stocks on Monday, pulling out Rs 1,658 crore. Meanwhile, Domestic Institutional Investors (DII) were net buyers of Rs 1,277 crore worth of securities.
FM doles out stimulus: Finance Minister Nirmala Sithraman yesterday, announced a fresh stimulus to support struggling sectors and ensure credit availability for businesses. The announced stimulus includes an extension of the employment scheme, loan guarantees to covid-hit sectors, and increased subsidies. The stimulus package takes note of the severe effect the pandemic has had on sectors such as tourism.