Ahead of the monthly Futures & Options expiry, SGX Nifty was trading flat, hinting at a muted opening for domestic equity markets.
BSE Sensex and NSE Nifty 50 closed mixed on Wednesday after having scaled fresh all-time highs. S&P BSE Sensex ended the day at 55,944 while the NSE Nifty 50 index closed at 16,634. Broader markets continued moving higher and outperformed the benchmark indices, closing comfortably in the green. India VIX surged 2.3% to settle at 13.5. Ahead of the monthly Futures & Options expiry, SGX Nifty was trading flat, hinting at a muted opening for domestic equity markets. Global cues were mixed as some Asian stock markets failed to mirror Wall Street’s up-move.
Global cues: Wall Street equity indices moved higher on Wednesday with S&P 500 gaining 0.22% and NASDAQ surging 0.15% — both hitting fresh record highs. Dow Jones jumped 0.11%. However, among Asian markets, Shanghai Composite, TOPIX, and KOSPI were in the red while Hang Seng, Nikkei 225, and KSODAQ were trading in the green.
What do the charts say: After hitting fresh all-time highs, Sensex and Nifty ended the previous day flat. “A small negative candle was formed on the daily chart with long upper shadow,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a reversal type formation (not a classical one). But, this needs to be confirmed with reasonable weakness in the subsequent session to call this a reversal Pattern. Hence, long positions need to be protected with appropriate stoploss at the highs,” he added.
Levels to watch out: Some believe the larger texture of the marker is still bullish with 16,700 acting as a hurdle. “Above the same, the uptrend could continue up to 16750-16790 levels. On the flip side, a strong possibility of quick intraday correction up to 16580-16550 levels is not ruled out if the Nifty succeeds to trade below 16620,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII data: For the seventh consecutive day, Foreign Institutional Investors (FII) were net sellers of domestic equities. FIIs sold stock worth Rs 1,071 crore. Domestic Institutional Investors (DII) pulled out Rs 151 crore.
Call and Put OI: Maximum Call open interest is placed at 16,700 strike for the current expiry. This is followed by 16,800 and 17,000 strike. Put OI is the most at 16,500, followed by 16,600 and 16,000 strike.