Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 were staring at a negative start yet again on Friday, as suggested by trends on SGX Nifty. Nifty futures were ruling at 15,721,50, down 58.50 points or 0.4 per cent, on Singaporean Exchange. In the previous session, BSE Sensex fell 8 points to end at 53,019, while Nifty 50 ended at 15780, down 19 points. “The recent pause in the index has derailed the momentum on the broader front as well. And, indications are still mixed so we suggest keeping a check on leveraged positions and waiting for clarity. Apart from the global factors, upcoming auto sales data will also be in focus for cues,” Ajit Mishra, VP – Research, Religare Broking, said.
Global cues: Asian stock markets were trading in the red in early trade on Friday. Japan’s Nikkei 225 was down 0.72%, and the Topix declined 0.52%. The S&P 500 declined nearly 0.9% to 3,785.38. The Dow Jones Industrial Average slipped 253.88 points, or 0.8%, to 30,775.43, and the Nasdaq Composite pulled back by 1.3% to 11,028.74.
Core sector output expands by 18.1% in May: Output of eight core infrastructure sectors in India expanded by 18.1 per cent in May against 16.4 per cent in the year-ago period, according to official data released on Thursday.
FII and DII data: On Thursday, foreign institutional investors (FIIs) offloaded Rs 1,138.05 crore worth of shares, while domestic institutional investors (DIIs) were buyers to the tune of Rs 1,378.20 crore worth of shares on a net basis in Indian equity market.
Nifty technical view: Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that after the formation of false upside breakout at 15800 levels on 27th June, the absence of any sharp weakness from near the hurdle in the last three sessions could be in favor of bulls to make a comeback from the lows. “But, any decisive move below 15600 levels is likely to negate the bullish bet and could result in sharp weakness down to 15200 levels,” Shetti added.
Nifty support, resistance: Technically, from the last three days the market has been witnessing non directional activity. “For Nifty, 15700 could be the key support level and 15900 would act as an important resistance zone. On further decline, the index could fall to 15600-15550 levels. Any fresh uptrend is possible only after the index sees 15900 breakout and above the same it could move up to 16000-16050,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.