Equity indices reversed some of final week’s losses, beginning the week and the new month on sturdy footing. S&P BSE Sensex now sits with 49,849 points although the stock NSE Nifty 50 is above 14,750. On Tuesday morning, SGX Nifty was trading 91 points larger, hinting at a gap-up commence for markets, following the positive movement recorded on Wall Street yesterday. But, Sensex and Nifty may not be out of the woods however. “Technically, we would consider this as a pullback move as of now as we have a ‘Lower Top Lower Bottom’ structure on Nifty and until that is violated again, we are not out of the woods yet,” stated Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking.
Global watch: Wall Street enjoyed the initial trading session of the month with NASDAQ zooming 3%, followed by a 2.38% jump in the S&P 500, and Dow Jones gained 1.95%. Asian peers had been hunting to continue yesterday’s positive movement with Shanghai Composite, Hang Seng, KOSPI, and KOSDAQ trading with gains. Japanese equity markets had been down in the red.
Technical take: On Monday, Nifty created an inside bar soon after Friday’s sell-off, according to Deepak Jasani, Head of Retail Research, HDFC Securities. “While this is a mildly positive signal, it needs to soon fill the down gap between 14919-15065 to nullify the recent weakness,” he added. On the other hand, Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, terms today as an ‘important day’ for the industry. Chouhan added that the dismissal of 14,830 would be incredibly positive for the industry and the dismissal of 14,600 would be unfavorable.
Support and resistance: At this stage, Nifty’s assistance is placed at 14,450 levels although instant resistance is at 14,950, according to Sumeet Bagadia, Executive Director, Choice Broking.
FII and DII trades: On Monday, Foreign Institutional Investors (FII) had been once again bet purchasers of domestic securities, pumping in Rs 125 crore. Domestic Institutional Investors (DII) had been once again net sellers, pulling away Rs 194 crore from equities.
Sings of revival: The government’s GST collection continued to stay robust in February. GST collections came in at Rs 1,13,143 crore in the earlier month, 7% larger on-year basis. Along with this, Manufacturing PMI also was steady at 57.5 in the month just marginally decrease from the earlier month.