Entering Wednesday’s trading session, SGX Nifty was down nearly 100 points, hinting at a negative start to the day’s trade.
Domestic equity markets witnessed a volatile trading session on Tuesday before closing deep in the red. S&P BSE Sensex gave up the 60,000 mark, falling 410 points or 0.68% on the closing bell while the NSE Nifty 50 managed to end the day just above 17,700. Bank Nifty closed 0.59% lower, slipping below the 38,000 mark while the India VIX soared 2.67%, breaching 18.5 levels. Entering Wednesday’s trading session, SGX Nifty was down nearly 100 points, hinting at a negative start to the day’s trade. Global cues were negative after Wall Street equity indices closed with losses.
Global Watch: On Wall Street NASDAQ tanked 2.8% while S&P 500 was down 2% at the closing bell. Dow Jones closed 1.6% lower. Asian stock markets mirrored the fall with Nikkei 225 falling more than 2%. Shanghai Composite, Hang Seng, KOSPI and KOSDAQ were all down in the red.
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Technical take: During yesterday’s volatile session, Nifty formed a long negative candle as per the daily timeframe chart with long lower shadow, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a broad-based profit booking from recent new highs of 17947 levels. The sharp upside recovery of later part of Tuesday’s session signal absence of any significant trend reversal at the highs,” he added. Shetti believes the near term trend setup of Nifty is still positive.
Levels to watch out: Nifty has given up the highs but now 17600 -17550 levels could act as a sacrosanct support zone, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. “For day traders, 17800-17840 would be the intraday resistance level. On the flip side, 17600–17550 would be the strong intraday support zone. The texture of the market is volatile and it will remain volatile till the monthly expiry day,” he added.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic equity on Tuesday, pulling out Rs 1,957 crore from Dalal Street. FIIs, however, were net buyers of Index Options worth over Rs 9,000 crore. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 161 crore.
IPO watch: Aditya Birla Sun Life AMC’s IPO will open for subscription today, as the company looks to raise Rs 2,768 crore from the primary market by selling 3.88 crore equity shares in a fixed price band of Rs 695-712 per share. Ahead of the IPO, shares of Aditya Birla Sun Life AMC were trading with a weak premium in the grey market.