Domestic benchmark indices have ended with losses for three consecutive trading sessions now. S&P BSE Sensex settled at 53,514 on Wednesday after dropping 372 points or 0.69% while the NSE Nifty 50 index shed 91.65 points or 0.57% to end at 15,966. While benchmark indices suffered, broader markets fared better with midcap and smallcap indices gaining on Wednesday. Now, entering the weekly futures & options expiry session, SGX Nifty was suggesting a weak start to the day’s trade. Global cues were mixed after Wall Street indices closed in the red.
Global watch: On Wall Street, Dow Jones closed 0.67% lower followed by S&P 500 and the NASDAQ index. Shanghai Composite was also down in red while Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were up with gains.
What do the charts say: “A long negative candle was formed on the daily chart, that has overlapped the previous negative candle,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this market action signal continuation of downside momentum and a lack of strength to sustain the highs,” he added.
Levels to watch out for: With the Nifty having fallen for three days straight, the short-term trend of the market is seen to be weak. “Nifty is currently placed at the key lower support of 16000 levels. A decisive move below this support could drag the Nifty down to the next support of 15700 levels. A sustainable upside could resume above 16150 levels,” Nagaraj Shetti said. Meanwhile, Om Mehra of Choice Broking sees support for Nifty at 15850 and 15800.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers once again on Wednesday. FIIs pulled out Rs 2,839 crore from domestic markets yesterday. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 1,799 crore.
Inflation soars in US: Inflation in the United States skyrocketed to 9.1% in June, beating expectations. This did make investors nervous on Wall Street as a more hawkish US Federal Reserve can not be ruled out now. India’s retail inflation slid marginally in June, as numbers reported earlier this week showed, however, it still remains well above the tolerance band.