With Sensex and Nifty having risen for the third consecutive session, stock markets are extending the positive momentum. Analysts believe that this trend might continue in the coming sessions.
Both the S&P 500 and the Russell 2000 Index of small caps rallied to all-time highs.
With Sensex and Nifty having risen for the third consecutive session, stock markets are extending the positive momentum. On Monday S&P BSE Sensex ended 276 points or 0.71% higher while the 50-stock Nifty closed just above 11,500 mark. Analysts believe that this trend might continue in the coming sessions. “Nifty is currently closed just above the resistance of the down sloping trend line at 11500, taken from the swing high of 11794 and connected lower high. and we observe intraday strength in the market around the hurdle. Hence, one may expect further attempts of upside breakout of 11550-11600 levels in the coming sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
For the October series, maximum call open interest (OI) was at 12,000 strike with 18.11 lakh contracts. This was followed with 17.45 lakh contract at 12,500 strike. Put OI was the most at 10,500 strike, followed by 23 lakh contracts at 11,000 strike. “The texture of charts clearly suggest the short term trend is still up but strong possibility of intraday correction cannot be ruled out if the index trade below 11450. For the swing traders 11450 should be the sacrosanct level to watch,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
Global cues: The SGX Nifty was up 44 points on Tuesday morning, hinting at a positive start for Nifty. Stock markets in the United States gained yesterday, with the Dow Jones moving 1.68% higher. Major European stock markets were also in the green. In Asia, Hang Seng was in the Green and so were Nikkei 225 and TOPIX. South Korean share markets were also seen inching higher.
FII and DII trades: Foreign Institutional Investors (FII) were again net buyers of domestic stocks on Monday. FIIs bought Rs 236 crore worth equities and Rs 1,089 crore worth Index Options. Domestic Institutional Investors (DII) were the exact opposite selling Rs 471 crore worth domestic stocks.
Volatility creeps back up: The India VIX index or the volatility gauge was seen surging back up on Monday. After opening at 18.35 levels, India VIX moved as high as 20.03 only to slip marginally later on but ended the day 7% higher at 19.71 levels.
Eyes back on MPC: The Government of India appointed Economist Ashima Goyal, Jayanath R Varma, and Shashanka Bhide to the RBI’s Monetary Policy Committee that was shy of three members earlier this month, which forced the postponement of its meet. With the appointment, market participants will wait for the next MPC meet to see how the committee moves forward with the newly appointed three members.