Ahead of Wednesday’s trade, SGX Nifty was trading with gains, suggesting a continuation of the up-move.
Domestic markets resumed their uptrend on Tuesday as Sensex and Nifty soared higher as benchmark indices soared higher during the dying hours of trade. S&P BSE Sensex added 696 points or 1.22% to close at 57,989 while NSE Nifty 50 closed 198 points or 1.16% higher at 17,315. Ahead of Wednesday’s trade, SGX Nifty was trading with gains, suggesting a continuation of the up-move. Global cues were positive during the early hours of trade. Investors will keep an eye on the geopolitical conflict in Europe and its implications along with rising crude oil prices.
Global watch: On Wall Street, NASDAQ zoomed 1.95%, followed by S&P 500 and Dow Jones. Among Asian markets, Shanghai Composite, Hang Seng, Nifty, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all in the green.
Technical take: Yesterday’s positive close formed a long bull candle on the daily chart, that has almost engulfed the long bearish candle of Monday, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This is a positive indication and signal a counter-attack of bulls after one session of decline. Further upside from here (above 17355) could negate the bearish engulfing pattern formation of Monday,” he added.
Levels to watch out: Now 17200 is expected to act as trend decider for the index, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. “Above the same, the uptrend wave will continue till 17380-17435, while below 17200 the uptrend would be vulnerable,” he added. Meanwhile, Nagaraj Shetti said that the chart pattern indicates an upside of around 17500 in the short term. He added that one may expect further upside targets of around 17800-18000 levels in the near term.
FII and DII trades: Foreign Institutional Investors (FII) were net buyers on Tuesday. FIIs pumped in Rs 384 crore, Domestic Institutional Investors (DII) were net sellers. DIIs pulled out Rs 602 crore from domestic markets.
Call and Put OI: For the March series, Call open interest (OI) is the most at 18000 strike while Put OI is the most at 17000 strike. “Long addition was seen in Nifty and Bank Nifty futures along with spike in volumes,” said Rahul Sharma, Director & Head – Research at JM Financial. Put writing was seen in Nifty and Bank Nifty as maximum buildup was seen at 17000 and 35500 puts.