Equity indices on Dalal Street continued to surge greater on Thursday. At closing, S&P BSE Sensex was at 52,232 though the Nifty 50 index ended the expiry session on 15,690. Broader markets participated in the rally with midcap and tiny-cap indices outperforming the benchmarks. India VIX dived 8% to trade close to 15 levels. On Friday morning, SGX Nifty was down in the adverse territory. Global cues have been adverse in the course of the early hours of trade soon after Wall Street indices slipped to close in red.
Global cues: On Wall Street, NASDAQ ended 1.03% reduced on Thursday. S&P 500 closed down by .36% though the Dow Jones was .07% in the red on closing. The adverse momentum was carried forward to Asian markets with Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ all trading in the red.
Technical take: Nifty reached a fresh all-time higher on Thursday and ended close to these levels. “A small positive candle was formed on the daily chart with lower shadow. Nifty registered another new all-time high of 15705 and closed near the highs. Technically, this pattern signals uptrend continuation, after a small intraday dip of the previous session,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out: Nifty now finds help at 15,600, according to Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments. “15500, 15400, and 15300 are the other levels of support, the most crucial being 15300. As long as the markets can hold on to that level, the overall trend remains bullish and traders can accumulate long positions around these support zones,” he added. On the other hand, the next hurdle for the index is placed at 15,800, mentioned Rohit Singre, Senior Technical Analyst at LKP Securities.
FII and DII trades: Foreign Institutional Investors (FII) have been once more net purchasers of domestic stocks on Thursday. FII pumped in Rs 1,079 crore. Meanwhile, Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 278 crore.
RBI MPC: Reserve Bank of India’s Monetary Policy Committee (MPC) will finish its 3-day deliberations today. The MPC is anticipated to preserve prices unchanged in the wake of the second wave of the covid-19 pandemic. The repo price is at 4 per cent and the reverse repo price at 3.35 per cent.