Sensex and Nifty had been net gainers in the preceding week even although they traded flat for most of the days. S&P BSE Sensex now sits at 51,544 points whilst the broader 50-stock NSE Nifty is at 15,163. The upward march could continue on Monday as SGX Nifty jumped more than 75 points through the early hours of trade. “Based on the chart of large-cap companies, the weakness is increasing in the short term and it would probably lead to a quick correction to the level of 50,500 or 50,600. If the Sensex crosses 51,900 for the 52,750 levels, it would be advisable to buy. Below the level of 51300 would lead to further weakness,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
Global watch: On Friday, Wall Street indices closed close to their record highs. NASDAQ was up .50% whilst the S&P 500 jumped .47%. Dow Jones closed flat but positive. Nikkei 225, KOSPI and KOSDAQ had been up more than 1% each and every on Monday morning. Chinese equity markets had been closed.
Technical take: “On a technical chart, the benchmark index has been trading near to its all-time high with the support of 50 days Moving Averages and also trading above the major psychological level of 15000 marks, which may be taken as strong support for near term while upside resistance comes at 15260,” mentioned Sumeet Bagadia, Executive Director, Choice Broking.
Support and resistance levels: ICICI Securities’ Head of Technical Research, Dharmesh Shah mentioned that investors must use dips to accumulate high-quality midcaps and huge caps, as Nifty to garner robust getting demand about 14600. Meanwhile, Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments siad that the target of 15500 is nonetheless open and traders can accumulate positions for this target with a strict quit beneath the 14500 mark which is excellent assistance for the index. “Since the risk-reward ratio is skewed, a buy on intraday corrections would be a prudent way to enter long positions,” he added.
FII and DII activity: During the week gone by, Foreign Institutional Investors (FII) had been net purchasers of domestic stocks on pretty much all days except Friday when they sold securities worth Rs 37 crore. Domestic Institutional Investors (DII) had been net sellers of stocks on all days.
Results today: Jet Airways, Eureka Industries, Trans Freight Containers, Hawa Engineers, Divya Jyoti Industries, Alora Trading Company, CDG Petchem, Advance Syntex, Emmsons International, are some of the firms that will announce their quarterly final results today on Dalal Street.