On Wednesday morning, SGX Nifty was up with gains, hinting at some positive build-up ahead of the opening bell.
Domestic equity markets plummeted on Tuesday as bears took control and forced Dalal Street lower. S&P BSE Sensex fell 273 points or 0.52% to closed at 52,578 while the NSE Nifty 50 was down 78 points or 0.49%, ending the day’s trade at 15,746. A sell-off in Asian stocks and a bad start to the earnings season for pharma companies acted as catalysts for the weakness. Nifty Pharma ended 4.33% lower. On Wednesday morning, SGX Nifty was up with gains, hinting at some positive build-up ahead of the opening bell. Cues from global peers were mixed during the early hours of trade.
Global watch: Wall Street closed with losses on Tuesday led by the tech-heavy NASDAQ, down 1.21%. S&P 500 closed 0..47% lower and Dow Jones slipped 0.24%. Big tech stocks along with Chinese technology shares were among the drags. Among Asian peers, TOPIX and Nikkei 225 were down with losses but KOSPI and KOSDAQ were moving higher.
Technical take: Nifty 50 continues to remain range-bound. “Long negative candle was formed on the daily chart with minor lower shadow. This signal continuation of weakness in the market with range-bound action,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that Nifty has slipped for a maximum 3-4 trading sessions in recent months and hence the odds of a decent upside bounce can be expected in the next 1-2 sessions.
Levels to watch out: “The market failed to surpass the level of 15900 for the third consecutive day, which triggered bull liquidation below the level of 15750,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “The market undertone is expected to be range-bound as we are approaching the supports of the lower boundary (15650/15600). On the higher side, 15810 and 15900 would be resistance levels,” he added.
FII and DII trades: Foreign Institutional Investors (FII) pulled out Rs 1,459 crore from domestic markets yesterday. FIIs have been net sellers for nine consecutive days now. Domestic Institutional Investors (DII) were net buyers on Tuesday, pumping in Rs 729 crore.
IPO Watch: The Initial Public Offering of Glenmark Life Sciences was oversubscribed on day one of the subscription window with retail investors leading the charge. At the end of the day, the issue was subscribed 2.78 times. Glenmark Life Sciences will be joined by Rolex Rings IPO today. The company has raised Rs 219 crore from anchor investors ahead of the IPO.