After nearing their all-time highs, Sensex and Nifty ended yesterday’s volatile trading session flat. S&P BSE Sensex now sits at 44,618 points though the NSE Nifty 50 is at 13,113. “A small negative candle was formed on Wednesday with lower shadow, which signal a formation of hanging man type candle pattern. Normally, a formation of hanging man after a reasonable upmove are considered as a warning signal for reversal of trend post confirmation,” stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He, even so, casted doubts on quick negatives.
Technical analysts say that the close to term trend continues to be variety bound for Nifty with a slight constructive bias till the benchmark index offers up 12,800. However, caution is becoming advised by analysts as weakness could emerge at highs as stock markets could witness profit booking.
Global market place watch: Cues from worldwide peers have been mixed on Thursday morning. Stock markets in the United States closed in the red on Wednesday with Dow Jones gaining .20% though S&P 500 gained .18%. Asia peers have been mixed with Shanghai Composite trading in the red but Hang Seng, TOPIX, KOSDAQ all sitting with gains.
Support and resistance: On the charts, Nifty’s upside appears restricted to 13250/13350 levels though the base has been shifted to 12980 from 12790 levels, according to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. On the other hand, Sumeet Bagadia, Executive Director, Choice Broking says that at present level, the help comes at 12800 though upside resistance comes at 13200.
Call and Put selection information: Maximum Call Open Interest (OI) is placed at 13,000 strike 27.51 lakh contracts, followed by 19.45 lakh contracts at 13,500 strike. Put OI is maximum at 12,00- strike with 30.4 lakh contracts for the December series. This is followed by 13,000 strike with 27.21 lakh contracts.
FII and DII information: Although, the getting by Foreign Institutional Investors (FII) was significantly less than what they have averaged in the previous few trading sessions, but they have been nonetheless net purchasers of domestic securities worth Rs 357 crore. Domestic Institutional Investors (DII) sold securities worth Rs 1,635 crore.
Bulk and Block offers: Shares of Bharti Infratel saw heightened activity on Wednesday. Edgepoint Global and P 5 Asia Holding Mauritius sold stocks of the firm though Nettle Infrastructure purchased shares of Bharti Infratel. Adani Logistics sold more than 9 lakh shares of Snowman Logistics. Tata Sons sold more than 18 lakh shares of Tata Chemicals.