Domestic equity benchmarks S&P BSE Sensex and NSE Nifty 50 enter this week’s initially trading session sitting close to all-time highs as bulls regained manage on Dalal Street last week. S&P BSE Sensex is at the moment at 60,048 although the NSE Nifty 50 is sitting at 17,853, each obtaining gained practically 2% last week. The positive momentum may well continue with SGX Nifty surging more than 90 points greater, hinting at a positive get started for domestic equities. Global cues have been positive at the get started of the week. “Nifty on the weekly chart formed a long bull candle, which has overlapped previous bull candle. This signal that the uptrend as per medium term is intact and any minor weakness of short term is unlikely to have any sharp negative impact on uptrend of the market,” stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: On Wall Street, Dow Jones and S&P 500 closed with gains throughout the earlier session, but NASDAQ ended with losses. However, Asian stock markets have been in firm manage of bulls throughout the early hours of trade. Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, KOSDAQ along with Australian equity indices have been trading in the green.
Technical take: Although the weekly chart pattern for Nifty 50 shows a bullish bias, on Friday the everyday chart formation was a compact damaging candle with minor upper and decrease shadow, according to Nagaraj Shetti. “Technically, this action signal a formation of spinning top type candle pattern at the highs. Normally such formations after a reasonable upmove or at the hurdle more often act as a downward reversal pattern,” he added. Nagaraj Shetti has not ruled out minor weakness in the early component of the week.
Levels to watch out: Nifty has not moved previous 17,800 level which was a critical resistance. “For the index, 17775-17700 could be the important support levels. On the flip side, 18000 and 18200 could act as a major resistance level. Contra traders can take a long bet near 17700 with a strict 16650 support stop loss, while partial profit booking is advisable between 18100 to 18200 level,” stated Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
FII and DII trades: Foreign Institutional Investors (FII) have been net purchasers of domestic stocks on Friday for the second consecutive day. FIIs pumped in Rs 442 crore into equities. Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 515 crore.
IPO watch: IPO markets will continue to see action this week with the public challenge of Aditya Birla Sun Life AMC set to open on Wednesday. Aditya Birla Sun Life AMC is seeking to raise Rs 2,768 crore by sell equity shares in a value band of Rs 695-712 per share. Further, the higher-flying Paras Defence and Space Technologies could list on the bourses later this week. The IPO of Paras Defence and Space Technologies was subscribed 304 instances.