Domestic equity markets witnessed a volatile trading session on Tuesday ahead of closing deep in the red. S&P BSE Sensex gave up the 60,000 mark, falling 410 points or .68% on the closing bell even though the NSE Nifty 50 managed to finish the day just above 17,700. Bank Nifty closed .59% decrease, slipping under the 38,000 mark even though the India VIX soared 2.67%, breaching 18.5 levels. Entering Wednesday’s trading session, SGX Nifty was down almost one hundred points, hinting at a adverse commence to the day’s trade. Global cues had been adverse immediately after Wall Street equity indices closed with losses.
Global Watch: On Wall Street NASDAQ tanked 2.8% even though S&P 500 was down 2% at the closing bell. Dow Jones closed 1.6% decrease. Asian stock markets mirrored the fall with Nikkei 225 falling more than 2%. Shanghai Composite, Hang Seng, KOSPI and KOSDAQ had been all down in the red.
Technical take: During yesterday’s volatile session, Nifty formed a lengthy adverse candle as per the each day timeframe chart with lengthy decrease shadow, mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a broad-based profit booking from recent new highs of 17947 levels. The sharp upside recovery of later part of Tuesday’s session signal absence of any significant trend reversal at the highs,” he added. Shetti believes the close to term trend setup of Nifty is nevertheless positive.
Levels to watch out: Nifty has offered up the highs but now 17600 -17550 levels could act as a sacrosanct assistance zone, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. “For day traders, 17800-17840 would be the intraday resistance level. On the flip side, 17600–17550 would be the strong intraday support zone. The texture of the market is volatile and it will remain volatile till the monthly expiry day,” he added.
FII and DII trades: Foreign Institutional Investors (FII) had been net sellers of domestic equity on Tuesday, pulling out Rs 1,957 crore from Dalal Street. FIIs, having said that, had been net purchasers of Index Options worth more than Rs 9,000 crore. Domestic Institutional Investors (DII) had been net purchasers, pumping in Rs 161 crore.
IPO watch: Aditya Birla Sun Life AMC’s IPO will open for subscription today, as the corporation appears to raise Rs 2,768 crore from the principal market place by promoting 3.88 crore equity shares in a fixed price tag band of Rs 695-712 per share. Ahead of the IPO, shares of Aditya Birla Sun Life AMC had been trading with a weak premium in the grey market place.