Domestic equity markets ended in red for the third consecutive day on Tuesday. S&P BSE Sensex now sits at 50,363 points although the 50-stock NSE Nifty is at 14,910. Stock markets have been consolidating for a although now as bond yields rise and inflation worries emerge. Technically, Nifty not displaying any substantial decline on Tuesday, following two days of sharp weakness could be a slight positive indication, stated Nagaraj Shetti, Technical Research, Analyst, HDFC Securities. SGX Nifty was up 44 points on Wednesday morning, hinting at a gap-up get started for equities.
Global watch: On Tuesday, NASDAQ closed flat with positive bias but Dow Jones and S&P 500 slipped into the adverse. Asian peers had been trading mixed on Wednesday morning. Shanghai Composite, KOSPI, KOSDAQ had been down in the red. Hang Seng and Nikkei 225 had been trading with gains although TOPIX was flat.
Technical take: The medium-term trend for Nifty is nonetheless positive. “Tuesday’s small range movement could signal a repetition of recent upside bounce of the early part of the March. Hence, one may expect upside recovery in the market from here or from slightly lower levels in the next few sessions,” Nagaraj Shetti stated. For the coming session, he expects Nifty to trade sideways.
Levels to watch out for: Domestic markets could stay on the sidelines till the FOMC meeting later this week, stated Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. He added that investors will need to maintain an eye on the 14750/49800 and 15100/51000 variety. “Long positions should be bought between the levels of 14750/14800 (49800/50000) with a stop loss of 14700/49600 in the near future.”
IPO Watch: Today the IPOs of Craftsman Automation and Laxmi Organic Industries close following the 3-day subscription period. So far Craftsman Automation has been subscribed 1.26 occasions and Laxmi Organic Industries IPO has been subscribed 6 occasions with all categories oversubscribing the challenge. Further, Kalyan Jewellers was subscribed 60% on the 1st day. Add to the IPO fever, today the troubles of Nazara Technologies and Suryoday Small Finance Bank will open.
FII and DII trades: Foreign Institutional Investors (FII) turned net purchasers of domestic stocks following 3 days of promoting. FIIs pumped in Rs 1,692 crore on Tuesday. Domestic Institutional Investors (DII) had been once again net sellers, pulling out Rs 1,168 crore.