Entering the last trading session of the week, SGX Nifty was up 80 points hinting at a positive start for domestic equities.
Domestic benchmark indices soared higher on Thursday, setting fresh all-time highs. Broader markets followed and most sectoral indices closed with gains except Nifty Media, Nifty Metal and Nifty IT. S&P BSE Sensex is currently placed at 59,141 while the NSE Nifty 50 is at 17,629. Bank Nifty sky-rocketed 2.22% on Thursday, hitting a fresh all-time high. Entering the last trading session of the week, SGX Nifty was up 80 points hinting at a positive start for domestic equities. Global cues were, however, mixed with Wall Street indices closing in opposite directions while Asian stock markets climbed higher.
Global watch: NASDAQ closed with gains on Wall Street but S&P 500 and the Dow Jones closed with losses. Among Asian markets, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all trading with gains.
- ICICI Bank, SBI, Infosys among 170 stocks to hit 52-week high on BSE; Voda-Idea, Tata Power volume toppers
- Share Market Highlights: Sensex tanks 456 pts on closing, Nifty ends at 18,266; Airtel up 4%, IRCTC tanks 19%
- Sensex, Nifty end 7-day gaining streak; experts advise caution, suggest defensive bets
Technical take: For the second consecutive session Nifty has formed a long bull candle, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This action signal a decisive upside breakout of the range-bound movement. This pattern also reflects the ongoing strength of the uptrend in the market. Though Nifty is placed at the new highs, still there is no indication of any tiredness or reversal pattern at the highs. This is a positive indication and signals more upside ahead,” he added.
Levels to watch out: “Technically, the index has formed a robust breakout continuation formation and the short-term trend is extremely strong. For the day traders, 17540-17580 levels would be the key support level to watch out for. Above the same, the uptrend formation will continue up to 17690-17750 levels. On the flip side, Nifty would be vulnerable if it slips below 17540,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII trades: For the fifth consecutive session Foreign Institutional Investors (FII) were net buyers of domestic equities. FIIs pumped in Rs 1,621 crore into domestic stocks on Thursday. Domestic Institutional Investors (DII) were, however, net sellers of stocks, pulling out Rs 795 crore.
Bad bank takes shape: Banking stocks could again be in action today after the Finance Minister announced that the Government will back Rs 30,600 crore worth securities receipts for the National Asset Reconstruction Company Limited (NARCL). With this, the government has stepped up the process of setting up the proposed bad bank which will take over bad loans from banks worth Rs 2 lakh crore to resolve or liquidate.