Entering the final trading session of the week, SGX Nifty was down 10 points in the red while global cues were mixed.
Domestic equity markets scaled fresh highs on the weekly expiry session and closed the day in the green. S&P BSE Sensex currently sits at 54,844 while the NSE Nifty 50 is just above 16,350. Bank Nifty surged higher yesterday but failed to regain 36,000 levels while broader markets mirrored the up-move. Entering the final trading session of the week, SGX Nifty was down 10 points in the red while global cues were mixed even after Wall Street equity indices closed with gains. “The short term uptrend status of Nifty remains intact with range bound action. The overall chart pattern of Nifty and the positive reversal in broad market indices could hint at a possibility of an upside breakout of the small range in Nifty in coming sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global Watch: On Wall Street, Dow Jones closed flat with a positive bias while S&P 500, Dow Jones and the NASDAQ ended comfortably in the green. Among Asian markets, Hang Seng, Shanghai Composite, KOSPI and KOSDAQ were down in the red while TOPIX and Nikkei 225 were in the green.
Technical take: Chartists believe Nifty is likely to continue its upward march in the coming sessions. “Technically, on daily charts, the Nifty has formed a range breakout formation which suggests a continuation of an uptrend wave in the near future,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. Further, Nagaraj Shetti pointed out that the overall market breadth has turned positive. “This indicate completion of higher bottom formation on the daily chart of mid cap and small cap sectors and one may expect upside bounce in these segments in the short term,” he said.
Levels to watch out: “We are of the view that 16280-16220 would be a key support level for trend following traders. Above the same, the range breakout formation is likely to continue up to 16400-16475 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII trades: On Thursday, Foreign Institutional Investors (FII) were net sellers of domestic stocks. FIIs pulled out Rs 212 crore from the cash market. However, FIIs were net buyers of index futures & options, and stock futures & options. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 307 crore.
IPO watch: yesterday was the last day to bid for Chemplast Sanmar and Aptus Value Housing Finance IPOs. Both the public issues sailed through and were oversubscribed. Chemplast Sanmar was subscribed 2.21 times at the end of the day while Aptus Value Housing was subscribed 17.20 times.