SGX Nifty was down in the red on Tuesday morning, hinting at a flat start for domestic markets. Cues from global peers were negative.
Domestic benchmark indices snapped their four-day gaining streak on Tuesday to end in the red. S&P BSE Sensex now sits at 49,161 while the Nifty 50 index is at 14,850. SGX Nifty was down 17 points during the early hours of Tuesday, hinting at a flat start for domestic markets. Cues from global peers were negative with Wall Street closing in the negative once again. Although benchmark indices closed in the red, there were some positives to be drawn. The Nifty Midcap index closed 0.93% higher, the midcap 100 index was up 0.79%. Similarly, the smallcap indices closed in the green. India VIX continued to slip and closed 1.95% lower, below 20 levels.
Global Watch: Stock indices on Wall Street closed in the red on inflation worries. Dow Jones tanked 1.36%, followed by a 0.87% fall in S&P 500, and NASDAQ ended 0.09% lower. Among Asian markets, TOPIX and KOSPI were down 1% each, the Nikkei 225 index slipped 0.66%, and Hang Seng was down 0.17%. Shanghai Composite was up in the green.
- Sensex rally not over yet, bull market still has steam; Morgan Stanley says India will beat other EMs
- Nifty to consolidate in 15,900-15,400 range in F&O expiry week, Bank Nifty positive; RIL, Infosys top bets
- Nifty may hit 16,100, if it crosses 15,750; Bank Nifty remains in uptrend; Infosys, Asian Paints in focus
Technical take: On the technical front, Nifty formed a positive candle at the lows with minor upper shadow on Tuesday, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that this pattern indicates a comeback attempt by bulls after early part weakness. “The overall chart pattern indicates a limited decline from here and a formation of higher bottom formation and subsequent upside bounce in the market from the lows,” Shetti said.
Levels to watch out for: Technical analysts expect Nifty to breach 15,000 mark. “We are in an interesting juncture where the Nifty is expected to achieve 15200-15250 and the stop is a close below 14700. We are closer to the stop than the target which makes this a good risk-reward trade,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
FII and DII trades: On Tuesday, Foreign Institutional Investors (FII) were net sellers of domestic securities. FIIs pulled out Rs 336 crore from the market. Meanwhile, Domestic Institutional Investors (DII) sold stocks worth Rs 676 crore.
Results today: Asian Paints, Pidilite Industries, Lupin, Jindal Stee; & power, UPL Ltd, Tata Power Company, Voltas, Apollo Tyres, Happiest Minds Technologies, Mahindra Lifespace Developers, HG Infra Engineering, Sagar Cements, and Birla Corporation are some of the companies that will report their quarterly results today.