SGX Nifty falls, Sensex, Nifty eye gap-down start; 5 things to know before opening bell

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October 05, 2021 8:22 AM

Domestic equity market benchmarks BSE Sensex and Nifty 50 were once again staring at a gap-down opening on Tuesday, as suggested by SGX Nifty

Sensex, NiftyAsian stock markets were trading mostly lower in early trade

Domestic equity market benchmarks BSE Sensex and Nifty 50 were once again staring at a gap-down opening on Tuesday, as suggested by SGX Nifty. In the previous session, headline indices snapped the losing streak, recouping half of the last week’s losses, to end one per cent higher. S&P BSE Sensex gained 533 points to 0.91% to end at 59,299 while the Nifty 50 index jumped 159.20 points or 0.91% and settled at 17,691. Analysts say that Nifty has formed a bullish morning star pattern though its placement is normally after a deep/prolonged sell-off. “Nifty could continue its uptick and remain in the 17576-17781 band for the near term,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.

Global markets: Asian stock markets were trading mostly lower in early trade. In Japan, the Nikkei 225 dropped 3.21 per cent, and the Topix index declined 2.05%. South Korea’s Kospi shed 2.16%. The dollar eased and a gauge of global equity markets fell on Monday. The Dow Jones Industrial Average fell 0.94 per cent to 34,002.92, the S&P 500 lost 1.30 to 4,300.46 and the Nasdaq Composite dropped 2.14% to 14,255.49 as investors dumped Big Tech stocks in the face of rising Treasury yields.

FII and DII activity: On Monday, Foreign institutional investors (FIIs) lapped up shares worth Rs 860.50 crore, while domestic institutional investors (DIIs) bought shares worth Rs 228.06 crore on a net basis in the Indian share market.

Key levels to watch out for in Nifty: The markets failed to close above 17700; if it manages to do that, the short-term skepticism would be removed and the Nifty can scale higher towards 18000, said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments. “The support lies at 17400 and as long as that holds, the current trend is bullish and we can utilize intra day corrections to accumulate long positions,” he added.

Oil at 7-year high: Oil prices jumped Monday after OPEC and allied oil producing countries stayed with their gradual approach to restoring output slashed during the pandemic, agreeing to add only 400,000 barrels per day in November, according to Associated Press.

Minimum price band for IPOs: Sebi has asked if there is a need for minimum price band in public issues and if so, what should it be. As per Issue of Capital and Disclosure Requirements norms, an initial public offering (IPO) can be made through two methods—book building or fixed price method. In case of book building method, the issuer provides a price band wherein the upper end should not be higher by more than 20 per cent of the floor price.

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