Domestic equity markets surged greater through the earlier session, nearing their all-time highs. S&P BSE Sensex now sits at 55,958 even though the NSE Nifty 50 is at 16,624. Broader markets participated in yesterday’s rally, seeking to reverse the underperformance of the last handful of weeks. Entering the third trading session of the week, SGX Nifty was up in the green, hinting at a further positive begin for domestic equities. Global cues through the early hours of trade have been also positive as most Asian Stock markets moved greater, mirroring Wall Street’s overnight gains.
Global watch: On Wall Street, NASDAQ surged .52% through the earlier trading session followed by S&P 500 and the Dow Jones. Among Asian stock markets, Hang Seng, Shanghai Composite, TOPIX, and Nikkei 225 have been trading with gains even though KOSPI and KOSDAQ have been down in the red.
Technical take: Nifty reclaimed 16,600 through the earlier session, forming a smaller positive candle on the everyday chart with minor upper and reduce shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities.”Technically, this pattern indicates an uptrend continuation pattern. Tuesday’s up-move was accompanied by positive all round marketplace breadth and outperformance in the broad marketplace indices like mid-cap and smaller-cap segments of NSE exchange. This is a positive indication and signals more upside in the brief term,” he added.
Levels to watch out: The pull-back rally of the earlier two sessions indicates the index is most likely to consolidate among 16500 to 16720 levels, stated Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “As long as the index is trading above the 10 day SMA or 16500 level, the uptrend wave is likely to continue up to 16700-16750 levels,” he added. Shrikant Chouhan believes the index is vulnerable under 16500.
FII and DII watch: Foreign Institutional Investors (FII) have been net sellers of domestic stock for the sixth consecutive trading session. FIIs pulled out Rs 1,644 crore from domestic markets yesterday. Domestic Institutional Investors (DII) have been net purchasers, pumping in Rs 2,380 crore.
Gearing up for taper tantrum: India’s chief financial advisor Krishnamurthy V Subramanian has stated that the nation is properly-poised to climate the ripple impact of taper tantrum if the US Federal Reserve starts to scale back its $120-billion-a-month quantitative easing later this year. Subramanian exuded self-assurance that the government’s elevated marketplace borrowing strategy for a second straight year will go on smoothly.