Domestic benchmark indices began the week on a positive note on Monday whilst broader markets continued to right with midcap and smallcap indices closing with losses. Currently, S&P BSE Sensex sits at 55,555 whilst the NSE Nifty 50 is at 16,496. Bank Nifty sits at 35,124 — gaining .26% yesterday. On Tuesday morning, SGX Nifty was up 89 points, hinting at some positive momentum ahead of the day’s opening bell. Cues from worldwide peers have been positive as Asian markets mirrored gains recorded by Wall Street equity indices for the duration of the prior session.
Global watch: On Wall Street, benchmark indices closed with gains on Monday. Dow Jones jumped .61% whilst S&P 500 gained .85%. The tech-heavy NASDAQ was the most effective performer, zooming 1.55%. Among Asian markets, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ have been all trading with gains.
Technical take: Although domestic benchmark indices closed with gains, Nagaraj Shetti, Technical Research Analyst, HDFC Securities sees indicators of concern. “A reasonable negative candle was formed with minor lower shadow. Technically, this pattern indicates a lack of strength to sustain the highs. Though Nifty closed higher on Monday, the overall market breadth was sharply negative and broad market indices like mid-cap and small-cap segments have continued to bleed. This is not a good sign, as it reflects inherent weakness in the market,” he mentioned.
Levels to watch out for: Yesterday’s rally could possibly have been a relief rally, according to analysts. “Technically, on intraday charts, the index has formed a double bottom formation. We are of the view that the 10 day SMA or 16450 would be the immediate support for the bulls. As long as it is trading above the same, an upside could lift the index up to 16550,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. Slipping under 16450 could send the index back to 16350-16300 levels.
FII and DII trades: Foreign Institutional Investors (FII) have been net sellers of domestic stocks for the fifth consecutive trading session on Monday. FIIs sold Rs 1,363 crore worth of equities. Domestic Institutional Investors (DII) have been net purchasers, pumping in Rs 1,452 crore on Monday.
IPO watch: Shares of Aptus Value Housing and Chemplast Sanmar will ist on the bourses today. The listing of the two stocks could be muted as has been the current trend. The prior two listings on Dalal Street have seen the stocks plummet under the IPO cost band on the opening day of trade.