Domestic equity benchmarks have now been gaining for two consecutive trading sessions. S&P BSE Sensex sits at 48,944 points although the 50-stock NSE Nifty is at 14,653. On Wednesday morning, cues from international peers have been mixed but technical analysts think bulls are in handle on Dalal Street at this juncture. Cases of coronavirus continue to surge in India but assurance of support from international strategic partners and reduction in instances in Mumbai look to be aiding the positivity. SGX Nifty was trading flat with a unfavorable bias on Wednesday morning, hinting at a muted get started for equity markets.
Global watch: On Wall Street, Dow Jones ended flat with a positive bias on Tuesday. NASDAQ and S&P 500 have been in the red. Among Asian peers, Hang Seng was up in green, followed by Nikkei 225 and TOPIX. Meanwhile, Shanghai Composite, KOSPI, and KOSDAQ have been in the red.
Technical take: Nifty crossed the quick-term resistance of 14,550 yesterday and broader markets participated in the up-move. This hints at bulls taking handle on Dalal Street. “A long bull candle was formed, which signal an emergence of strong buying in the market,” stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities. With Nifty managing to hold above resistance levels and closing above the hurdle of the prior opening downside gap about 14600 levels, the index has shown strength. “This is a positive indication and signals more upside in the near term,” Shetti added.
Levels to watch out for: There is prospective for upside in the close to term. “Above 14550/48600 levels, we may see a pullback rally to continue up to 14700-14750/49100-49300. There is a possibility of a further upside that may continue to push the index upwards, till 14800/49800,” stated Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities. On the downside, dismissal of 14550/ 48600 could open one more leg of correction up to 14485/ 48200 levels, according to Shrikant Chouhan.
FII and DII information: Foreign Institutional Investors (FII) sold Rs 1,454 crore worth of domestic securities on Tuesday. On the other hand, Domestic Institutional Investors (DII) purchased Rs 1,463 crore worth of stocks.
Results today: Biocon, Tata Communications, KPR Mill, UTI AMC, SIS Ltd, Hathway Cable & Datacom, Mastek Ltd, Bombay Dyeing & Manufacturing Company are some of the firms that will be reporting their quarterly benefits today.