Sensex and Nifty are now on a three-day winning streak and have recouped most of the losses registered on October 15.
Among Asian peers, Shanghai Composite was trading with marginal gains on Friday morning while Hang Seng was down with losses along with KOSPI, KOSDAQ, TOPIX, and Nikkei 225.
Sensex and Nifty are now on a three-day winning streak and have recouped most of the losses registered on October 15. Although domestic benchmark indices closed lower from yesterday’s highs but they still managed to gain and continue the positive momentum. “A small positive candle was formed with a minor upper shadow, which indicates sideways range movement with positive bias in the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. However, analysts are not convinced of a massive upside bounce unless Nifty crosses the 12,025-12,050 mark convincingly.
Currently, investors have been advised to maintain caution and adopt and buy on dips strategy. Eyes for today’s trading session are glued to developments around earnings, coronavirus vaccine and the US elections. Technically, Nifty finds resistance at 12,000-12,050 levels and support at 11,800-11,700 levels. SGX Nifty on Wednesday morning was trading over 45 points higher.
Call and Put option data: Call open interest (OI) was maximum at 12,500 strike with 24.96 lakh contracts for the October series. It was followed by 23.9 lakh contracts at 12,000 strike. Maximum Put OI was at 11,000 strike with 25.41 lakh contracts and then at 11,500 strike with 24.5 lakh contracts.
Global cues: Stock markets in the United States ended higher on Tuesday in hopes of a stimulus. Asian markets were largely in the green except for Shanghai Composite, which was trading with losses. Hang Seng was up over 1%. KOSPI, KOSDAQ, Topix and Nikkei 225 were all trading with gains.
FII and DII data: Foreign Institutional Investors (FII) were net buyers of domestic equities on Tuesday, pumping in Rs 1,585 crore. However, FIIs sold index options, index futures and stock futures. Domestic Institutional Investors (DII) sold stocks worth Rs 1,633 crore on Tuesday.
Bulk and Block deals: On Tuesday, Kirtan M Rupareliya bought 1.1 lakh shares of Likhitha Infrastructure at Rs 133.6 per share through a bulk deal. Alpha Leon Enterprises LLP bought over 31lakh shares of Dewan Housing Finance Corporation Ltd and was also seen selling 26.05 lakh shares of the same. Morgan Stanley Asia sold 11.73 lakh shares of IndusInd Bank while BofA Securities Europe picked the stock.