On Friday Nifty corrected to close below the 20, 50 and 200-period moving average on the 15-minute chart, according to technical analysts.
Hang Seng, TOPIX, Nikkei 225, KOSPI, and KOSDAQ were all up in the green on Monday morning.
Domestic equity markets enter the week’s first trading session after ending in red on Friday. S&P BSE Sensex is currently sitting at 50,792 while the 50-stock NSE Nifty is just above 15,000 mark. Technically Nifty may have turned weak for the near term with the correction recorded on Friday, said Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC securities. Dalal Street could resume its upward march today with SGX Nifty trading 75 points higher, hinting at a gap-up start for markets. Among Asian peers, apart from Shanghai Composite most of the stock markets were trading with gains.
Global Watch: On Friday, NASDAQ closed in the red while S&P 500 and Down Jones ended with gains. On Monday morning, Shanghai Composite was down half a per cent. Hang Seng, TOPIX, Nikkei 225, KOSPI, and KOSDAQ were all up in the green.
Technical take: On Friday Nifty corrected to close below the 20, 50 and 200-period moving average on the 15-minute chart, which hints at the near term trend turning weak, according to Subash Gangadharan of HDFC Securities. “On the daily chart, while the Nifty remains in uptrend, it has closed just above the 20 day SMA, implying that the coming week’s price action will be crucial for the future direction of the market,” he added.
Levels to watch out for: Nifty needed to reach 15,431 and Sensex had to breach 52,561, with none of them achieved, the Indian market has once again come to the lower support, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. “The 14850/50150 could be decisive support and if it breaks, the Nifty/Sensex could move closer to 14650/49500 or 14500/49000. It seems difficult to get out of weakness immediately.,” he said. However, Chouhan said that if Indices hold above 15,200/51,250 levels, upward activity can be expected.
IPO Watch: While Anupam Rasayan’s IPO will enter its second day today, the firm will be joined by Craftsman Automation and Laxmi Organic Industries — all looking to raise funds through public issues.
FII and DII activity: Foreign Institutional Investors (FII) were net sellers of domestic stocks on Friday. FIIs sold Rs 942 crore worth of securities, accompanied by Domestic Institutional Investors (DII) who sold Rs 163 crore worth of securities.