Domestic equity markets began the week with a tug-of-war amongst bears and bulls and sooner or later closing with marginal gains. S&P BSE Sensex is at the moment at 60,077 points whilst the NSE Nifty 50 is at 17,855. Broader markets closed mixed whilst Bank Nifty soared .90% greater, settling at 38,171. India VIX rallied 6% greater, closing at 18 levels. On Tuesday morning, SGX Nifty was trading 30 points greater, hinting at muted marketplace momentum ahead of the opening bell. Global cues have been mixed on Tuesday right after Wall Street stock indices closed in opposite directions in the course of the earlier trading session.
Global watch: Dow Jones closed with gains on Monday, gaining .21% whilst S&P 500 fell .28% and NASDAQ dropped .52%. Among Asian stock markets, Shanghai Composite was up .06% whilst Hang Seng zoomed .92%.On the other hand, KOSPI, KOSDAQ, TOPIX, and Nikkei 225 have been down with losses.
Technical take: During Monday volatile trading session, Nifty formed a modest adverse candle on the day-to-day chart with minor upper and decrease shadow, mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically this pattern indicate a consolidation movement in the market for the last two sessions post sharp upmove of Thursday. This market action signal a lack of sharp selling participation in the market at the new highs,” he added.
Levels to watch out for: Although Nifty’s chart formation indicates short-term weakness, the quick-term trend is nonetheless positive. “For day traders, the 17900 level could be the immediate hurdle, and below the same, the correction wave could continue up to 17750-17710 levels. On the flip side, if the Nifty moves above 17900, the uptrend continuation formation is likely to continue up to 17950-18000 levels,” mentioned Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
FII and DII trades: Foreign Institutional Investors (FII) have been net sellers of domestic stocks on Monday, pulling out Rs 594 crore from equities. FIIs have been also net sellers of index possibilities, pulling out Rs 2,072 crore. Domestic Institutional Investors (DII) have been net purchasers of domestic stocks, pumping in Rs 1,397 crore.
ICRA revises GDP forecast: Rating agency ICRA has revised its 2021-22 genuine GDP projection for India to 9% from 8.5% earlier. A ramp-up in COVID-19 vaccination, wholesome advance estimates of Kharif (summer time) crop and more rapidly government spending have been the components that led to the revision, the rating agency mentioned in a statement. Meanwhile, the Reserve Bank of India expects the economy to develop at 9.5%.