Domestic equity benchmarks could begin Tuesday’s trading session with gains as SGX Nifty traded higher 43 points during hours.
Domestic equity benchmarks could begin Tuesday’s trading session with gains as SGX Nifty traded higher 43 points during hours. The 30-share Sensex ended 141 points higher at 38,182, while the broader Nifty 50 closed at 11,274 on Monday morning. Analysts claim that Nifty closing above the 11,250 mark signals a bullish sentiment in the stock market that might see equities gain in the coming session. The Supreme Court has deferred the AGR hearing till Friday with no clarity so far on how the telecom operators will pay their dues. Major Asian stock markets were in the green during the early hours of trade.
FII and DII data: Provisional data shows that Foreign Institutional Investors pumped in Rs 302 crore into domestic equities on Monday while Domestic Institutional Investors pulled out Rs 504 crore. This was the third straight day of FIIs buying domestic stocks.
Defence stocks: The Ministry of Defence, in a push to local manufacturing, has prepared a list of 101 import items that will be embargoed. This helped defence stocks gain significantly on Monday. The momentum could carry on to Tuesday’s session as well.
Global markets: US stock markets ended higher except NASDAQ, which slipped into the red. In Europe, equity markets across France, Germany, and the United Kingdom ended with gains. Asian stock markets were seen surging higher on Tuesday morning with all major indices except KOSDAQ trading with gains.
Results today: Central Bank of India, Motherson Sumi Systems, RITES,Chalet Hotels,Ashoka Buildcon, Bajaj Electricals, Bosch, are some of the companies that are due to announce the April-June quarter results today.
Equity Mutual Fund outflows: For the first time in almost 4 years investors were seen pulling money away from stocks as they preferred holding cash. Equity funds outflows stood at Rs 2,480 crore in the month of July. Last time equity mutual funds saw outflows was in March 2016.
Technical talk: “The weekly time frame chart of Nifty is still positive and there is no formation of any significant reversal pattern at the highs. Hence, we are unlikely to see any major downward correction from the hurdle of 11350 levels in the short term. The short term uptrend status remains intact. A sustainable move above 11350 could open more upside towards 11550 in the near term. Having placed at the hurdle, the range movement (11250-11350) is expected to continue in the next session. Immediate support is placed at 11200,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.