Sensex, Nifty stare at cautious start on Wednesday; key things to know before market opens

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September 22, 2021 8:02 AM

Nifty futures were trading 9.50 points up at 17,571 on Singaporean Exchange, suggesting a cautious start for BSE Sensex and Nifty 50 on Wednesday.

sensex, niftyAnlaysts say global cues would continue to influence market this week as all eyes are set on ECB and US Fed MPC outcome. Image: Pixabay

Nifty futures were trading 9.50 points up at 17,571 on Singaporean Exchange, suggesting a cautious start for BSE Sensex and Nifty 50 on Wednesday. In the previous session, S&P BSE Sensex surged 514 points or 0.88 per cent to end at 59,005 while the Nifty 50 index jumped 165 points or 0.95 per cent to close at 17,562. Asian stocks were trading mixed in early trade. Anlaysts say global cues would continue to influence market this week as all eyes are set on ECB and US Fed MPC outcome where the expectation of a continuation of dovish stance is running high. “On the domestic front, with active cases falling to 6-month low, sentiments continue to be buoyant as the economic recovery continues. However, with valuations getting stretched, there would be bouts of volatility intermittently and hence traders should navigate cautiously,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.

Global watch: Stock markets in China tanked over a per cent after investors returned to trade from a two-day holiday. While stock markets in Hong Kong and South Korea remained closed on Wednesday for holidays. Japan’s Nikkei was flat, while the Topix index down 0.26 per cent. In overnight trade on Wall Street, US stocks ended near flat on Tuesday. The Dow Jones Industrial Average fell 0.15% to 33,919.84, the S&P 500 lost 0.08% to 4,354.19 and the Nasdaq Composite added 0.22% to 14,746.40.

FII and DII trades: On Tuesday, foreign institutional investors (FIIs) lapped up shares worth Rs 1,041.92 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 2,167.62 crore on a net basis in the Indian share market.

Puranik Builders files IPO papers: Puranik Builders has filed preliminary papers with capital markets regulator SEBI launch an initial public offering (IPO). The issue comprises fresh issue of shares worth Rs 510 crore and an offer for sale (OFS) up to 9.45lakh equity shares by the company’s promoters group.

Nifty levels to watch out for: The market seems to have reversed up surprisingly after a short period of downward correction. “This pattern indicates strength of present upside momentum and emergence of buying after a small dips. The present upside bounce from initial moving average support could signal possibility of more upside towards 17800 levels in the next few sessions. Immediate support is placed at 17425 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

September sees strong FPI inflows: In the current financial year, September saw the highest amount of foreign portfolio investments so far, but inflows into debt remained tepid compared to the equities. According to the NSDL data, foreign portfolio investors (FPI) invested Rs 13,163 crore into equities and Rs 5,423 crore in debt up until September 21.

What do charts say: According to Daily charts, the key support levels for the Nifty are placed at 17,370 followed by 17,320. “If the index moves up, the key resistance levels to watch out for are 17615 and 17,720. The index has violated the short-term support of its five-day exponential moving average (EMA) but is still maintaining its level above 15 and 21-day EMA supports. Strong supports are placed at 17320-17275 zone. Any dip to these levels will be a buying opportunity. An overall trading range is between 17300-and 17800 zones. On the hourly chart, the Nifty index has given a breakout of falling channel formation and showing a positive crossover in stochastic and RSI, which supports the upward trend,” Aprajita Saxena, Research Analyst, Trustline Securities, told Financial Express Online.

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