On Wednesday morning, SGX Nifty was flat, hinting at a muted start to the day’s trade.
Domestic equity benchmark indices soared for the second day straight on Tuesday and managed to breach some crucial levels. S&P BSE Sensex now sits at 50,136 while the Nifty 50 is at 14,845. Broader markets gained but underperformed the benchmark indices. Volatility has slipped further but still remains above 20 levels. On Wednesday morning, SGX Nifty was flat, hinting at a muted start to the day’s trade. Global cues seemed mixed with Wall Street closing with losses but some Asian peers were seen gaining during the early hours of trade.
Global watch: Bond yields surged and Wall Street benchmarks slipped on Tuesday. NASDAQ, S&P 500, and Dow Jones were all in the red. Among Asian peers, Hang Seng and KOSPI were gaining while Shanghai Composite, KOSDAQ, Topix, and Nikkei 225 slipped.
Technical take: On the charts, Nifty recent rally hints at more upside potential. “A long bull candle was formed on the daily chart with gap up opening and the market is now placed at the hurdle of the previous lower top around 14878- 23rd March. This is positive indication and the overall chart pattern signal possible upside breakout of this hurdle in the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out: Nifty is expected to breach the crucial resistance of 14,900 in the coming sessions, according to Nagaraj Shetti, above this he sees 15,200 as the next hurdle for the index. Meanwhile, support lies at 14,750. Bank Nifty has also moved up along with the benchmark Nifty 50. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities is expecting some activity in the banking index. “Bank Nifty can go up to 34500/34700. If the Bank Nifty performs, the Nifty could move closer to 14900 and 15050 levels,” he said.
FII and DII trades: On Tuesday, Foreign Institutional Investors (FII) were net buyers of domestic securities worth Rs 769 crore, halting their five-day selling spree. Domestic Institutional Investors (DII) were also net buyers, pumping in Rs 2,181 crore.