On Friday morning, SGX Nifty was up in the green hinting at positive momentum building up ahead of the opening bell.
Following US Fed’s hawkish comments, domestic benchmark indices mirrored global peers on Thursday and closed in the negative territory. On the closing bell, S&P BSE Sensex was at 52,323 while the Nifty 50 index ended the day at 15,691. Broader markets followed. On Friday morning, SGX Nifty was up in the green hinting at positive momentum building up ahead of the opening bell. Global cues were mixed during the early hours of trade. “Domestic Market may consolidate for some time before resuming its rally. Technically too, the trend remains intact till Nifty holds above 15,700 for an up move towards 16k mark,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.
Global watch: On Wall Street, the tech-heavy NASDAQ closed 0.87% higher but S&P 500 and Dow Jones remained in the negative. Among Asian peers, Shanghai Composite and TOPIX were down in the red while Hang Seng, Nikkei 225, KOSPI, and KOSDAQ were up with gains.
Technical take: For the first time in 19 sessions, Nifty has dropped for two consecutive trading sessions, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Hence, this action signal strength of profit booking which has emerged from the new highs. This is not a good sign for bulls to sustain the highs,” he added. Nagaraj Shetti added that Nifty has broken the crucial support of 10 day EMA.
Levels to watch out: “On an immediate basis, 15770/52500 and 15850/52700 levels would be major hurdles (for Nifty/Sensex),” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. He added that below 15550/51700, the Nifty/Sensex would gradually fall to 15400/51300 or in the worst-case scenario 15300/51000.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers for a second consecutive day on Thursday. FIIs pulled out Rs 879 crore. Domestic Institutional Investors (DII), however, turned net buyers, pumpkin in Rs 45 crore.
IPO watch: At the end of day-2 of subscription, Dodla Dairy Limited was subscribed by investors 3.3 times with retail investors subscribing to their portion 6.18 times. On the other hand. KIMS IPO crossed the halfway mark and closed with 0.56 times subscription. Retail investors have oversubscribed KIMS IPO.