SGX Nifty was up in the green, hinting at positive momentum build-up ahead of the day’s trade. Global cues were mixed
Dalal Street kickstarted the week with S&P BSE Sensex and NSE Nifty both ending with losses while broader markets surged higher. Sensex closed yesterday’s session at 58,177 points or 0.22% lower while Nifty 50 ended at 17355 or 0.08% lower. Bank Nifty ended the session 0.58% down. Midcap and smallcap indices on both BSE and NSE closed with gains. Entering Tuesday’s trading session, SGX Nifty was up in the green, hinting at positive momentum build-up ahead of the day’s trade. Global cues were mixed on Tuesday morning after Wall Street equity indices closed in either direction.
Global watch: On Wall Street, Dow Jones zoomed 0.76% higher while S&P 500 jumped 0.23%. However, the tech-heavy NASDAQ slipped 0.07% to close with losses. Among Asian stock markets, Hang Seng and Shanghai Composite were down with losses while Nikkei 225, TOPIX, KOSPI, and KOSDAQ were up with gains.
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Technical take: The weak market movement on Monday helped Nifty form a small candle on the daily timeframe chart with long lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a sideways range movement in the market. The market action of the last five sessions signals a lack of sharp selling participation in the market from the new highs. This pattern could eventually result in an upside breakout of the sideways range in the short term,” he added.
Levels to watch out: Nifty 50 has managed to sustain above 17,300 for the last few trading session. “Over the last four days, Nifty has been hovering between 17,250 to 17,435 levels. At the same time, the Nifty is consistently taking support at 17,250. As long as the index is trading above 17,250, the bullish formation is likely to continue up to 17,450 -17,500 levels. However, trading below the same could possibly trigger correction up to 17,200-17,150 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd.
FII and DII trades: For the second straight trading session Foreign Institutional Investors (FII) were net buyers of domestic stocks. FIIs pumped in Rs 1,419 crore into equities on Monday. Domestic Institutional Investors (DII) were net sellers, pulling out Rs 559 crore.
IPO watch: Investors will be eyeing the listing of Ami Organics and Vijaya Diagnostic shares today. Ami Organics IPO was subscribed more than 64 times by investors and the public issue of Vijaya Diagnostic Centre was subscribed over 4 times. Ami Organics was trading at a premium in the grey market but shares of Vijaya Diagnostic were down trading at a discount. Investors will also keep tabs on Sansera Engineering IPO that opens today for subscription.