Domestic headline indices again witnessed a battle between bears and bulls on Tuesday. S&P BSE Sensex ended 246 points or 0.45% higher at 54,767 points while the NSE Nifty 50 index gained 62 points or 0.38% to settle at 16,340. Bank Nifty zoomed more than 1% during the day. Now, entering Wednesday’s trading session SGX Nifty zoomed close to 200 points, suggesting continued upward momentum on Dalal Street. Global cues were positive after bulls propelled Wall Street indices higher on Tuesday.
Global watch: NASDAQ index zoomed 3.11% higher on Tuesday, followed by a 2.76% jump in S&P 500 and 2.43% in Dow Jones. Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, Kospi, and KOSDAQ were all in the green.
What do the charts say: On Tuesday, Nifty formed a long bull candle on the daily chart, that has placed beside the similar long bull candle of Monday, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern signals a range-bound action or consolidation movement at the hurdle. The crucial overhead resistance like 16250-16300 levels have been surpassed gradually. Technically, such choppy movement/range-bound action during upside breakout of important resistance is not a good sign for bulls to sustain the highs,” he added.
Levels to watch out for: Ruchit Jain of 5paisa.com is suggesting traders look for stock-specific buying opportunities and trade with a positive bias. “In case of any declines, the immediate support for Nifty will be seen around the hourly 20-EMA around 16220. On the flip side, the near-term upside for Nifty is seen around 16550-16650 range where we could see the confluence of resistances,” he added. Meanwhile, Nagaraj Shetti believes that a decisive move above 16300 levels is likely pull the Nifty towards another hurdle of 16500-16600 levels in the near term. “Immediate support is placed at 16200 levels.”
FII and DII flows: Foreign Institutional Investors (FII) were net buyers for the second day running on Dalal Street. FIIs pumped in Rs 976 crore. Domestic Institutional Investors (DII) were net sellers, pulling out Rs 100 crore.
Call and Put OI: For the July series, call Open interest (OI) is the highest at 17000 strike, followed by 16500. Put OI is the most at 16000 strike, followed by 15500.