Headline indices BSE Sensex and Nifty 50 were eyeing a muted opening on Tuesday, as suggested by trends on SGX Nifty.
Market particpants will closely watch stock-specific developments, oil prices, ongoing vaccination drive, rising Coronavirus cases, movement in rupee against US dollar and other global cues. Image: Reuters
Headline indices BSE Sensex and Nifty 50 were eyeing a muted opening on Tuesday, as suggested by trends on SGX Nifty. Market participants will closely watch stock-specific developments, oil prices, ongoing vaccination drive, rising Coronavirus cases, movement in rupee against US dollar and other global cues. According to an analyst, the market may remain volatile in the near term given high bond yields, rising commodity prices and risk of an increase in inflation. “Given the likelihood of high volatility continuing in the market for some time, investors would do well by accumulating good quality companies on the decline in the market,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.
SGX Nifty flat: Nifty futures were trading flat with some positive bias at 14,723 on Singaporean Exchange, indicating a tepid opening for BSE Sensex and Nifty 50 on Tuesday.
Lok Sabha passes Insurance Amendment Bill 2021: The Parliament on Monday approved a Bill to increase Foreign Direct Investment (FDI) limit in the insurance sector from 49 per cent to 74 per cent with the Lok Sabha passing the proposed law by a voice vote. The Insurance (Amendment) Bill, 2021 was passed by Rajya Sabha last week.
FII and DII trends: On Monday, foreign institutional investors (FIIs) offloaded shares worth Rs 786.98 crore, while domestic institutional investors (DIIs) lapped up shares worth Rs 542.70 crore on a net basis in the Indian equity market, according to the provisional data available on the NSE.
Technical talk: If the market goes above 14800 on Tuesday, the Nifty is likely to go up to 14950/15000, says Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. Tuesday would be a crucial day for the market. “The 14680/14570 levels would be the main supports. Nifty could fall heavily below 14570 levels. Bank Nifty has reached a double bottom at 33350. Small traders can take long positions with a stop loss of 33300 or can take short positions below the 33300 level,” he added.
Global market: Asian stocks were trading mixed in early trade on Tuesday. Japan’s Nikkei 225 gained over half a per cent while the Topix index was up 0.33 per cent. South Korea’s Kospi was trading marginally weak. In overnight trade on Wall Street, US stocks finished higher. The Dow Jones Industrial Average closed up 0.32 per cent. The S&P 500 gained 0.70 per cent and the Nasdaq Composite added 1.23 per cent.