Domestic equity markets saw a volatile trading session on Monday, slipping from intra-day highs to closed with a unfavorable bias. S&P BSE Sensex was down 189 points on the closing bell at 52,735 though the Nifty 50 index ended 45 points decrease at 15,814. On Tuesday morning, SGX Nifty was down with marginal losses, signalling some unfavorable momentum ahead of the opening bell. Cues from worldwide peers had been mixed. On the charts, Nifty stook appears strongly placed. “The long term chart like weekly signal intact of the uptrend and there is no sign of any reversal pattern developing at the new highs,” stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: Wall Street stock markets closed mixed with Dow Jones in the red though S&P 500 and NASDAQ gained. Among Asian peers, Hang Seng, Shanghai Composite, Nikkei 225, KOSPI, and TOPIX had been in the red. Only KOSDAQ was up with gains.
Technical take: “A reasonable negative candle was formed with minor lower shadow. Technically, this pattern signal minor profit booking from the new highs,” Nagaraj Shetti stated. He, on the other hand, added that the all round market place breadth was positive and broad market place indices like mid and smaller-cap segments of NSE closed in the green, which is a positive indication.
Levels to watch out for: Nifty has held above assistance levels in the last handful of trading sessions. “We are of the view that, as long as the Nifty/ Sensex is trading above 15750 /52550 the uptrend texture should intact. We can expect an uptrend continuation wave up to 15900- 15950/ 53100-53500. On the flip side, below 15750/ 52550 would increase further weakness up to 15700-15660/ 52000-51700,” stated Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
FII and DII trades: Foreign Institutional Investors (FII) had been net sellers of domestic stocks on Monday, pulling out Rs 1,658 crore. Meanwhile, Domestic Institutional Investors (DII) had been net purchasers of Rs 1,277 crore worth of securities.
FM doles out stimulus: Finance Minister Nirmala Sithraman yesterday, announced a fresh stimulus to assistance struggling sectors and guarantee credit availability for organizations. The announced stimulus involves an extension of the employment scheme, loan guarantees to covid-hit sectors, and improved subsidies. The stimulus package requires note of the extreme impact the pandemic has had on sectors such as tourism.