Sensex and Nifty will today open for trade for the very first time this week, seeking to choose up from exactly where they left off. S&P BSE Sensex now sits just above the 49,000 mark though the Nifty 50 index is just above 14,507. While analysts do anticipate some bounce back on stock markets just after the sharp fall noticed earlier this month, the vacation-shortened week is also anticipated to bring some volatility. India VIX, the volatility gauge, slumped 9% on Friday to close close to 20 levels just after getting surged more than 22 in the course of the earlier week. SGX Nifty was up 30 points, hinting at a positive start out for equities.
Global markets: While Dalal Street was closed on Monday, international markets saw mixed trading. On Wall Street, Dow Jones gained though NASDAQ and the S&P 500 slipped. On Tuesday morning, Shanghai Composite was down in the red along with Nikkei 225, and TOPIX. While Hang Seng, KOSPI, and KOSDAQ gained.
What do the charts say: After Friday’s jump the brief-term trend for Nifty appears to have been reversed, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Nifty on the weekly chart has bounced back from the weekly 10 period EMA in this week. The moving average is now at 14590 and the Nifty closed just below it, as per week’s close. Previously, such downside violations of this EMA has offered strong upside bounce in the subsequent weeks in past,” he added.
Support and resistance levels: For Nifty the next levels to watch out for, according to Nagaraj Shetti is 14,700. He adds that a sustainable move above that could open additional upside in the close to term. “On Thursday, the market stopped at a large support area and formed a bullish pattern today, which give us an indication that the coming week may be positive for the market,” stated Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. He added that if Nifty holds above 14,250 it could surge to 14,750-14,900.
FII and DII trades: Foreign Institutional Investors (FII), just after getting flooded domestic markets with funds this fiscal year, have not too long ago gone soft. FIIs have been net sellers of domestic stock in the course of the complete earlier week. Domestic Institutional Investors (DII) meanwhile have been net purchasers on 4 of the final 5 trading sessions.
IPO watch: Rakesh Jhunjhunwala-backed Nazara Technologies will list on the bourses today. Recent listing have been tepid but shares of Nazara Technologies have been commanding a powerful premium in the grey marketplace and have a powerful organization profile which could assist it list at a considerable premium.