Nifty futures had been trading 9.50 points up at 17,571 on Singaporean Exchange, suggesting a cautious get started for BSE Sensex and Nifty 50 on Wednesday. In the earlier session, S&P BSE Sensex surged 514 points or .88 per cent to finish at 59,005 although the Nifty 50 index jumped 165 points or .95 per cent to close at 17,562. Asian stocks had been trading mixed in early trade. Anlaysts say worldwide cues would continue to influence marketplace this week as all eyes are set on ECB and US Fed MPC outcome exactly where the expectation of a continuation of dovish stance is operating higher. “On the domestic front, with active cases falling to 6-month low, sentiments continue to be buoyant as the economic recovery continues. However, with valuations getting stretched, there would be bouts of volatility intermittently and hence traders should navigate cautiously,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, mentioned.
Global watch: Stock markets in China tanked more than a per cent right after investors returned to trade from a two-day vacation. While stock markets in Hong Kong and South Korea remained closed on Wednesday for holidays. Japan’s Nikkei was flat, although the Topix index down .26 per cent. In overnight trade on Wall Street, US stocks ended close to flat on Tuesday. The Dow Jones Industrial Average fell .15% to 33,919.84, the S&P 500 lost .08% to 4,354.19 and the Nasdaq Composite added .22% to 14,746.40.
FII and DII trades: On Tuesday, foreign institutional investors (FIIs) lapped up shares worth Rs 1,041.92 crore, although domestic institutional investors (DIIs) offloaded shares worth Rs 2,167.62 crore on a net basis in the Indian share marketplace.
Puranik Builders files IPO papers: Puranik Builders has filed preliminary papers with capital markets regulator SEBI launch an initial public supplying (IPO). The problem comprises fresh problem of shares worth Rs 510 crore and an offer you for sale (OFS) up to 9.45lakh equity shares by the company’s promoters group.
Nifty levels to watch out for: The marketplace appears to have reversed up surprisingly right after a quick period of downward correction. “This pattern indicates strength of present upside momentum and emergence of buying after a small dips. The present upside bounce from initial moving average support could signal possibility of more upside towards 17800 levels in the next few sessions. Immediate support is placed at 17425 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, mentioned.
September sees sturdy FPI inflows: In the present economic year, September saw the highest quantity of foreign portfolio investments so far, but inflows into debt remained tepid compared to the equities. According to the NSDL information, foreign portfolio investors (FPI) invested Rs 13,163 crore into equities and Rs 5,423 crore in debt up till September 21.
What do charts say: According to Daily charts, the important help levels for the Nifty are placed at 17,370 followed by 17,320. “If the index moves up, the key resistance levels to watch out for are 17615 and 17,720. The index has violated the short-term support of its five-day exponential moving average (EMA) but is still maintaining its level above 15 and 21-day EMA supports. Strong supports are placed at 17320-17275 zone. Any dip to these levels will be a buying opportunity. An overall trading range is between 17300-and 17800 zones. On the hourly chart, the Nifty index has given a breakout of falling channel formation and showing a positive crossover in stochastic and RSI, which supports the upward trend,” Aprajita Saxena, Research Analyst, Trustline Securities, told TheSpuzz Online.