Domestic stock markets climbed larger on Wednesday, rebounding strongly soon after weak initial couple of hours of trade. S&P BSE Sensex gained .25% to finish at 52,904 whilst Nifty 50 jumped .26% and closed at 15,853. Benchmark indices outperformed broader markets, except Smallcap indices. On Thursday morning, ahead of the weekly expiry session, SGX Nifty was up in the green signalling positive momentum ahead of the day’s trade. Global cues have been mixed soon after Wall Street equity indices closed in opposite directions.
Global cues: Dow Jones closed .13% larger on Wednesday, whilst S&P 500 gained .12%. NASDAQ, having said that, closed in the red. Among Asian peers, Shanghai Composite, Topix, and Nikkei 225 have been in the red whilst Hang Seng, KOSPI, and KOSDAQ have been trading with gains.
Technical take: Nifty moved larger and formed a affordable lengthy candle on the day-to-day chart with minor reduced shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This action signal range bound action in the market with buy on dips opportunity. The Nifty is nearing a crucial overhead resistance of 15900 levels and made a swing high of 15877 on Wednesday,” he added.
Levels to watch out: Nifty has been in a lengthy-fought battle to cross 15,900 now. “On Thursday, on the day of the weekly expiry of Index options, we would see the levels of 15950/53200 in the near term in case the Nifty/Sensex survive above the levels of 15800/52700,” stated Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “On the other hand, below the levels of 15800/52700, benchmark indices would find support at 15760/52550 and at 15740/52450 levels. A close below the level of 15760/ 52550 would be negative for the market,” he added.
FII and DII trades: Foreign Institutional Investors (FII) have been net sellers of domestic stocks on Wednesday, pulling out Rs 1,303 crore. Domestic Institutional Investors (DII), on the other hand, have been net purchasers of domestic equities, pumping in Rs 1,335 crore.
Zomato IPO: The initial public providing of Zomato was oversubscribed on the initially day of the sale as retail investors and certified institutional purchasers oversubscribing their respective portions. Zomato’s Rs 9,375 crore IPO will stay open for investors to subscribe to till Friday evening. The meals tech unicorn is initially amongst the several startups anticipated to debut on Dalal Street in the coming years.