Domestic equity industry benchmarks BSE Sensex and Nifty 50 have been staring at a cautious start out on Wednesday, a day prior to weekly F&O expiry. In the preceding session, headline indices ended larger for the second straight day. Sensex settled at 59,744 although Nifty 50 closed at 17,822. Bank Nifty gained .43% to close at 37,741. Asian stock markets have been seen trading mixed in early trade. “Domestic cues remain positive as economic activities gain further momentum and India’s current account surplus in 1QFY22 and high-frequency indicators suggest sharp macro-economic recovery,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, mentioned.
SGX Nifty in red: Nifty futures have been trading 25 points or .14 per cent down at 17,794 on Singaporean Exchange, suggesting a cautious start out for benchmark indices.
Global watch: Following an overnight bounce on Wall Street, Asian stock markets have been seen struggling for path. Japan’s Nikkei 225 fell .18% although the Topix index sophisticated .4%. South Korea’s Kospi slipped .46%. US stocks surged larger on Tuesday. The Dow Jones Industrial Average rose .92%, the S&P 500 gained 1.05% and the Nasdaq Composite added 1.25%.
What do charts say for Nifty50: Nifty held on to the 17640 help level, and in the late afternoon it ultimately cleared the intraday resistance of 17725. “On daily charts, based on post reversal formation the index has formed uptrend continuation formation while on intraday charts it has formed promising higher high and higher low series formation which clearly support further uptrend. We are of the view that 17750 would be the key support level for the trend following traders. If the index rises above the same the uptrend texture is likely to continue up to 17880-17900 levels. On the flip side, below 17750, it may trigger quick intraday correction up to 17710,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, mentioned.
FII and DII activity: On Tuesday, foreign institutional investors (FIIs) offloaded shares worth Rs 1,915.08 crore, although domestic institutional investors (DIIs) lapped up shares worth Rs 1,868.23 crore on a net basis in the Indian stock industry.
India’s rating outlook steady: Appreciating that banks and NBFCs now pose a lesser downside threat to the genuine economy thanks to the measures taken by the government and the banking regulator to repair their impaired balance sheets, Moody’s Investors Service on Tuesday affirmed India’s sovereign rating at Baa3, the lowest investment grade, although upgrading the country’s outlook to ‘stable’ from ‘negative’.