Ahead of the weekly futures & options expiry session, SGX Nifty was trading with gains, hinting at a flat to a positive start for domestic equities.
Domestic benchmark indices once again soared higher on Wednesday to hit fresh all-time highs but failed to hold the gains and finished the day down in the red. On Closing, S&P BSE Sensex was at 57,338, down 0.37% while the NSE Nifty was at 17,076, falling 0.33%. Broader markets closed with smallcap and midcap indices soaring higher while Nifty 100, Nifty 200, and Nifty 500 closed with losses. Bank Nifty closed with gains. Entering the weekly futures & options expiry session, SGX Nifty was trading with gains, hinting at a flat to a positive start for domestic equities. Cues from global peers were mixed after US equity indices ended in opposite directions.
Global watch: On Wall Street, NASDAQ soared higher, gaining 0.33% yesterday while S&P 500 closed with a positive bias. However, Dow Jones ended the day down with losses. Among Asian peers, Shanghai Composite, Hang Seng, Nikkei 225, and KOSDAQ were up in the green while KOSPI and TOPIX were down with losses.
Technical take: Benchmark indices witnessed profit-booking on Wednesday, falling from all-time highs. “A reasonable negative candle was formed at the new highs, which indicate consolidation/minor weakness in the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Having moved up sharply recently, the present consolidation/weakness could be considered as a buying opportunity in the market. There is a higher possibility of upside recovery attempt from the lows in the short term,” he added.
Levels to watch out: Although analysts expect some profit booking to continue in the near term, they advise remaining bullish over the medium term. “For the trend following traders, the 16980-16950 level would be the key level to watch out for. On the flip side, 17150-17200 could act as an intraday resistance level. In case of intraday correction, contra traders can take a long bet near the support level of 16950 with a strict 35 points stop-loss,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII activity: Foreign Institutional Investors (FII) have now pumped money into domestic markets for the three days straight. FIIs bought shares worth Rs 666.66 crore on Wednesday. Domestic Institutional Investors (DII) were net sellers on Wednesday, pulling out 1,287 crore.
IPO watch: At the end of the first day of bidding, AMI Organics IPO was fully subscribed by investors. Qualified Institutional Buyers (QIB) and Retail investors oversubscribed their portion of the issue. Overall the IPI was bid for 1.9 times. On the other hand, Vijaya Diagnostic Centre’s IPO was subscribed 0.30 times on day one with no investor category having fully subscribed their portion.