On Wednesday morning, SGX Nifty was down in the red signalling some weakness ahead of the opening bell.
Domestic equity markets resumed moving upwards on Tuesday as Sensex and Nifty surged 0.76% each. S&P BSE Sensex closed the day’s trade at 52,769 while the 50-stock NSE Nifty was at 15,812. On Wednesday morning, SGX Nifty was down in the red signalling some weakness ahead of the opening bell. Global cues were negative after Wall Street equity indices ended in the red. Asian peers were also down with losses. Technical analysts continue to see upside potential for domestic markets. “One may expect further upside towards 15900-15915 levels in the short term before showing next round of consolidation,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: On Wall Street, NASDAQ ended 0.38% lower, followed by a 0.35% fall in S&P 500 and a 0.31% drop in Dow Jones. Among Asian stock markets, Shanghai Composite, Hang Seng, TOPIX, Nikkei 225, KOSPI, and KOSDAQ were in the red.
Technical Take: Soring higher on Tuesday, Nifty formed a bullish continuation pattern, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. Nifty has also managed to cross 15,800, a key resistance zone. “The crucial intraday resistance of 15800 has been broken on the upside and the Nifty closed just above it, as per day’s close. This is a positive indication and signals more upside in the short term,” Nagaraj Shetti said.
Levels to Watch out for: Forming a bullish pattern, Nifty is now expected to hit the tall wall of 15900-15930, according to Shrikant Chouhan. “For Wednesday, 15900-15930 would be major hurdles on the Nifty and supports would be at 15730 and 15700 levels. Keep a strategy of buying on dips,” he added.
Zomato IPO opens today: The much-awaited mega Rs 9,375 crore IPO of Zomato is set to open today. The company has already managed to raise Rs 4,200 from anchor investors including marquee global investors such as Tiger Global, Blackrock, Goldman Sachs, JP Morgan and many more. Domestic investors such as SBI, HDFC, UTI MF, Axis MF, and others have also picked up a stake.
FII and DII trades: Foreign Institutional Investors were net buyers on Tuesday, pumping in Rs 113 crore into domestic markets on Tuesday. Domestic Institutional Investors (DII) also pumped in Rs 344 crore into domestic equities.