Sensex, Nifty may follow global cues on Tuesday; 5 things to know before today’s opening bell

By: |
Updated: June 15, 2021 8:06 AM

On Tuesday, cues from global peers were mixed after Wall Street indices closed in separate directions. Asian peers too were showing different biases during the early hours of trade.

stock market todaySGX Nifty was down in the red on Tuesday morning. (Image: REUTERS)

Domestic equity markets saw a volatile first trading session of the week but managed to close the day with gains. At Yesterday’s closing bell, S&P BSE Sensex was up 76 points at 52,551 while the 50-stock NSE Nifty moved 12.5 points higher to end at 15,811. On Tuesday, cues from global peers were mixed after Wall Street indices closed in separate directions. Asian peers too were showing different biases during the early hours of trade. SGX Nifty was down in the red. “The further direction of the domestic markets would depend on the monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Global cues: On Wall Street, the tech-heavy NASDAQ ended 0.74% higher while the S&P 500 was up 0.18%. However, Dow Jones closed in the red. Among Asian peers, Shanghai Composite, Hang Seng, KOSPI, and KOSDAQ were in the negative. Japanese markets, Nikkei 225 and TOPIX were up in the green.

Technical take: On Monday, the Nifty index formed a small positive candle at the new highs with a long lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this market action signals a formation of hanging man type candle pattern. Normally, formation of hanging man after a reasonable upmove or at the highs could act as a top reversal pattern, post-confirmation,” he added.

Levels to watch out for: The Nifty 50 closed above 15,800 after having slipped as low as 15,606 during the day. Now, if the index sustains above 15,850, then it would not be difficult for the market to conquer the levels of 16000/16050, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “Buying is advisable if the market drops to 15700/15720 levels. The Bank-Nifty has formed a Dragonfly Doji, which is bullish for the sector and for the market,” he said.

FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stocks on Monday, pulling out Rs 503 crore. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 503 crore. 

Inflation worry: Inflation reached fresh highs in May as prices continued to soar. Wholesale Price Inflation (WPI) came in at 12.94% in May while the CPI or retail inflation was at a six-month high of 6.30%. The rising inflation could pose a risk for stock markets if it remains elevated. 

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1IMF warns against widespread crypto adoption; says its ‘most direct cost’ is to macroeconomic stability
2Sebi mulls measures to improve liquidity in ETFs
3Sebi in process of finalising modalities to set up backstop facility for corp debt market