SGX Nifty was down in the red on Monday morning, hinting at some negative momentum ahead of the day’s trading session.
Domestic equity benchmark indices enter this week’s first trading session on the back of more than 2% gains in the previous week. S&P BSE Sensex currently sits at 54,277 while the NSE Nifty 50 index is at 16,238. Bank Nifty is sitting below 36,000 mark while the India VIX is above 12.5 levels. SGX Nifty was down in the red on Monday morning, hinting at some negative momentum ahead of the day’s trading session. Global markets were mixed during the early hours of trade. Technically, Nifty is still in the bullish zone, according to Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments. “If we can keep above that level (16300), the index should zoom to 16500-16600,” he added.
Global watch: Dow Jones and S&P 500 closed with gains on Friday but NASDAQ ended in the red. Among Asian stock markets, Shanghai Composite, Hang Seng, and KOSDAQ were down in the red while KOSPI, TOPIX, and Nikkei 225 were up in the green
What do the charts say: Technically, Nifty formed a bullish candle on the weekly scale, said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. He added that this bodes well for the bulls to start the next leg of the rally.
Levels to watch out for: Nifty now finds support at 16150-16050. “We are of the view that the medium-term trend is bullish and buying on dips and selling on rallies would be the ideal strategy for the positional traders. The 16150-16050 level on Nifty would be the strong support zone for the index. Trading above the same, the uptrend wave is likely to continue till 16400-16550 levels. Below 16050, breakout traders may prefer to exit from trading in long positions,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
IPOs keep coming: After witnessing 4 IPOs last week, Dalal Street investors will be greeted by at least 4 public issues this week. Cartrade Tech and Nuvoco Vistas Corporation will open for subscription today while Chemplast Sanmar, Aptus Housing Value Finance, and Aashka Hospitals will open later this week. Along with the IPOs, investors will also see the lsiting of Rolex Rings today.
FII and DII trades: Foreign Institutional Investors sold domestic stocks worth Rs 70 crore on Friday, marking the second straight day of pulling out money. On Friday, domestic Institutional Investors (DII) were net sellers, pulling out Rs 631 crore from the market.