Domestic equity markets continue to remain volatile as headline indices fell on Tuesday, after having traded flat for most of the day. S&P BSE Sensex ended the day 359 points or 0.64% lower at 55,566 points while NSE Nifty 50 fell 76.85 points or 0.46% at 16,584. India VIX was up 2.48 points regaining 20 levels. Now, ahead of the third trading session of this week, SGX Nifty was down with marginal losses, suggesting a weak opening to the day’s trade. Global cues were mixed as Asian stock markets traded mixed during the early hours of Wednesday.
Global watch: Dow Jones fell 0.67% on Wall Street while S&P 500 was down 0.63%. NASDAQ ended 0.41% lower. US stock markets opened after having remained shut on Monday. Asian stock markets were trading mixed with Hang Seng in losses while Shanghai Composite, Nikkei 225, TOPXI, KOSDAQ, and KOSPI were up with gains.
What do the charts say: On the charts, Nifty formed a doji type candle pattern on Tuesday, which is placed beside the long bull candle of Monday, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a cooling off of the up-trend post sharp up-move. This could be considered a temporary halt in the upside momentum,” he added.
Levels to watch out for: Although the up-trend is seen to be intact, the present consolidation may long for a few sessions which are likely to prepare a base for another round of sharp up-move in Nifty for the near term. The next upside levels to be watched are around 16900-17000, said Shetti. Support for the index is around 16400 while on the upside 16750 may act as an immediate hurdle, according to Palak Kothari, Research Associate, Choice Broking. “On the other hand, Bank nifty has support at 34800 levels while resistance at 36000 levels,” Kothari added.
FII and DII trades: Foreign Institutional Investors (FII) were once again net sellers of domestic stocks. FIIs pulled out Rs 1,003 crore from Dalal Street. Domestic Institutional Investors (DII) were net buyers, pumping in 1,845 crore.
GDP growth slows: India’s GDP growth slowed down to 4.1% in the January-March quarter, from 5.4% in the previous quarter. The economic growth was slowed down due to the omicron variant hampering economic activity while the war in Ukraine worsened fuel and food inflation. Economic growth in the last fiscal year stood at 8.7%.