On Monday morning, SGX Nifty was trading flat with a negative bias hinting at a muted start to the day’s trade.
Domestic equity markets enter this week’s first trading session on the back of nearly 2% gains during the previous 5 trading sessions. S&P BSE Sensex settled at 60,059 points while NSE Nifty 50 closed at 17,895. Broader markets mirrored the up-move as midcap and smallcap indices zoomed higher. On Monday morning, SGX Nifty was trading flat with a negative bias hinting at a muted start to the day’s trade. Global cues were mixed after Wall Street equity indices closed in the red during the previous trading session but Asian stock indices soared higher during the early hours of trade.
Global watch: Dow Jones ended 0.03% lower while S&P 500 slipped 0.19% and NASDAQ closed 0.51% in the red. Wall Street stocks fell on the back of weak jobs data. Asian markets were, however, trading with gains. Hang Seng was up nearly 2% while Shanghai Composite gained 0.26%. TOPIX and Nikkei 225 were up more than 1% each.
Trade set up: Nifty moved higher during the previous week and closed in on all-time highs. “Nifty needs to break above 17950 for the rally to continue to higher levels A small Doji at the top does not inspire confidence but at the same time does not invoke fear,” said Manish Shah, Founder, Niftytriggers. He added the range-bound action seen in the last two weeks between 17950-17450 seems to be resolving on the upside.
Levels to watch out for: The immediate support for the index is seen at 17820-17730, said Rohit Singre, Senior Technical Analyst at LKP Securities. “Index has reached to strong hurdle zone of 17950 where we can see sort of double top formation & if index managed to cross above-said levels decisively then we may see a good move towards 18300-18500 zone in the near term but if failed then we may see some more consolidation in the overall range of 17300-18000 zone,” he added.
FII and DII trades: On Friday, Foreign Institutional Investors (FII) pulled out Rs 64 crore from domestic stocks, marking the fourth consecutive session of being net sellers. Domestic Institutional Investors (DII) were also net sellers, pulling out Rs 168 crore.
Listing day: Aditya Birla Sun Life AMC shares will list on the stock exchanges today. The Rs 2,768 crore IPO was subscribed 5.25 times with all categories of investors oversubscribing their portion of the issue. IPO investors bid for the issue in the fixed price band of Rs 695-712 per equity share.