Domestic stock markets witnessed a bloodbath on Monday, as benchmark indices tanked more than 3% every. S&P BSE Sensex now sits at 47,883 though the Nifty 50 index settled at 14,310. On Tuesday morning, SGX Nifty was up in the green, hinting at a flat to positive opening as markets could possibly look to recoup some of yesterday’s losses. NASDAQ, Dow Jones, and S&P 500 all closed with losses on Monday but Asian markets had been not mirroring that trend on Tuesday morning. On the charts, Nifty has reversed its quick-term positive trend with yesterday’s fall.
Global watch: On Wall Street, NASDAQ slipped .36% on Monday, followed by Dow Jones and S&P 500. During the early hours of trade on Tuesday, Shanghai Composite was trading flat with a unfavorable bias though Hang Seng, Topix, Nikkei 225, KOSPI, and KOSDAQ had been all surging greater.
Technical take: Nifty formed a extended bear candle on the everyday chart with minor reduced shadow and the opening downside gap remains unfilled, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “From the upper range near 15200, the market has reached down to the lower range of 14300-14200 levels. Hence, there is a higher possibility of sharp move on either side,” he added.
Levels to watch out for: If Nifty tanks additional to give up 14,250, the index might fall to 13,800-13,900, mentioned Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments. He added that if the index has to bottom out it requires to respect 14,250. Meanwhile, Nagaraj Shetti believes that if acquiring emerges from present levels, Nifty could possibly shoot back up to 14,800-14,900 in the coming weeks.
FII and DII trades: On Monday, Foreign Institutional Investors (FII) had been net sellers of domestic securities worth Rs 1,746 crore. FIIs have been sellers for two consecutive sessions now. DIIs, meanwhile, had been net purchasers of stocks worth Rs 232 crore.
Macro information: IIP information showed that industrial output widened to 3.6% year-on-year in February from 1.6% in the prior month. On the other hand, CPI inflation scaled a 4-month peak of 5.52%. “Base effects and surging fuel costs have pushed CPI higher. However, March could mark a local maxima for CPI, with inflation likely moderating in the coming months,” mentioned Rahul Bajoria, Chief India Economist, Barclays.