On Wednesday morning, SGX Nifty was in the red, hinting at a weak start for equity markets.
Domestic equity markets snapped their gaining streak to end flat with a negative bias on Tuesday. S&P BSE Sensex settled at 51,934 while the 50-stock NSE Nifty ended the day at 15,574, after hitting a record high of 15,660 during the day. Broader markets fared worse on Tuesday while the volatility index surged higher. On Wednesday morning, SGX Nifty was in the red, hinting at a weak start for equity markets. Cues from global peers were mixed during the early hours of trade. However, on the charts, Nifty’s positive momentum has not been altered. “Tuesday’s consolidation movement has not changed the positive sentiment created in the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: Equity indices on Wall Street closed mixed on Tuesday. NASDAQ and the S&P 500 ended in the negative while the Dow Jones closed with gains. Among Asian peers, Shanghai Composite was in the negative along with Hang Seng, and KOSDAQ. TOPIX, Nikkei 225, and the KOSPI were up in the green.
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Technical take: On Tuesday, Nifty formed a small negative candle at the new highs with minor upper and lower shadow, as per the daily timeframe chart. “Technically, this pattern indicate tiredness in the market after a strong up-move of Monday. This consolidation movement so far not showing any negative implication on the trend and the market could resume its uptrend soon,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Analysts have their eyes set on the RBI’s MPC meeting this week for further indications for the market.
Levels to watch out: The trend, chartists say, is still positive for Dalal Street. Any positive trigger could take the market higher towards 15,775-15,800, according to Manish Shah, Founder, Niftytriggers. He added that support for the index is placed at 15,450-15,500.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic equities on Tuesday, pulling out Rs 449 crore. Domestic Institutional Investors (DII) were net buyers, pumpkin in Rs 230 crore.
Results today: Motherson Sumi Systems, Muthoot Finance, Ranami Metals & Tubes, PVR, MTAR Technologies, Panacea Biotec, NRB Bearings, Dhunseri Ventures, are some of the firms that will report their quarterly earnings today.