On Thursday morning, SGX Nifty was trading flat, hinting at a muted start ahead of the opening bell.
Domestic headline indices hit fresh all-time highs on Wednesday, nudging away weak global cues, but was helped by the government’s policy decisions. S&P BSE Sensex hit an all-time high of 58,777 before ending slightly lower from the record levels at 58,723. NSE Nifty 50 scaled 17,532 for the first time ever but closed the day at 17,519. Broader markets participated in the rally with all sectoral indices on NSE closing with gains except Nifty Media. Entering the weekly expiry session, SGX Nifty was trading flat, hinting at a muted start ahead of the opening bell. Global cues were mixed on Thursday morning as Wall Street closed with gains but Asian markets failed to mirror the up-move.
Global watch: On Wall Street, S&P 500 zoomed 0.85%, followed by NASDAQ and the Dow Jones as investors looked past concerns surrounding another covid induced economic slowdown. Among Asian stock markets, Shanghai Composite was up with gains while Hang Seng, Nikkei 225, TOPIX, KOSPI and KOSDAQ were down with losses.
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Technical take: While hitting fresh highs, Nifty 50 formed a long bull candle, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “A long bull candle was formed on the daily chart, which indicates an upside breakout of the narrow range movement of the last one week. This is a positive indication and one may expect further upside in the short term,” he added.
Levels to watch out for: “Nifty has managed to clear the resistance at 17,450. Technically, post the 17450 range breakout, the index succeeded to close above 17500, which indicates a strong possibility of a continuation uptrend wave up to 17575. Above the same, the index could rally up to 17625, whereas trading below 17450 may trigger a quick intraday correction up to 17400-17350 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII trades: Foreign Institutional Investors (FII) were net buyers of domestic stocks for the fourth consecutive trading session on Wednesday. FIIs pumped in Rs 232 crore into equities. Domestic Institutional Investors (DII) were also net buyers yesterday, buying stock worth Rs 167 crore.
IPO watch: The IPO of Sansera Engineering was fully subscribed on the second day of bidding by investors. Retail investors along with employees of the firm have fully subscribed their portion of the IPO while Qualified Institutional Buyers have subscribed to 0.38 times the reserved portion and Non-institutional Investors have bid for 0.22 times their quota.