On Wednesday morning, SGX Nifty was up in the green, hinting at continued positive momentum.
Domestic equity markets continue to remain under the grip of bulls, scaling fresh all-time highs repeatedly. S&P BSE Sensex currently sits at 57,552 while the NSE Nifty 50 is placed at 17,132. Broader markets have participated in the up-move recently as midcap and smallcap indices looked to recoup their earlier underperformance. However, India VIX has also surged higher along with the benchmarks, now sitting above 14 levels. On Wednesday morning, SGX Nifty was up in the green, hinting at continued positive momentum. Cues from global peers were mixed during the early hours of trade.
Global watch: Wall Street equity indices closed with losses on Tuesday. Dow Jones was down 0.11% while S&P 500 slipped 0.13% and NASDAQ was down 0.04%. However, Asian stock markets were not mirroring the fall and instead were moving higher. Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPO, and KOSDAQ were up in the green.
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Technical take: For the second session straight, Nifty formed A long bull candle on the daily chart, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicate a sharp upside breakout in the market after a small range movement. Normally, such violent upmoves in the short term more often results in a minor consolidation or breather patterns, before showing further upside momentum,” he added.
Levels to watch out: “The immediate supports for Nifty are placed around 16980 and 16920 while 17200 and 17300 would be the levels to watch on the upside,” said Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking.
IPO watch: Today, IPOs of Ami Organics and Vijaya Diagnostic will open for subscription. Together the two public issues are looking to raise Rs 2,464 crore. Investors can bid for Ami Organics IPO in the price band of Rs 603-610 per share and a bod lot of 24 equity shares. On the other hand, Vijaya Diagnostic IPO is available for bidding in the price band of Rs 522-531 per share in a bid lot of 28 shares.
India posts fastest growing GDP: India’s economy grew 20.1% from the year-ago period in the April-June quarter of this financial year. The sharp rise in GDP was aided by a low base effect of the previous year when the economy contracted by 24%. India’s economy, however, still remains below pre-pandemic levels.