Headline indices BSE Sensex and Nifty 50 had been eyeing a muted opening on Tuesday, as recommended by trends on SGX Nifty. Market participants will closely watch stock-certain developments, oil costs, ongoing vaccination drive, increasing Coronavirus instances, movement in rupee against US dollar and other international cues. According to an analyst, the industry may well stay volatile in the close to term offered higher bond yields, increasing commodity costs and threat of an raise in inflation. “Given the likelihood of high volatility continuing in the market for some time, investors would do well by accumulating good quality companies on the decline in the market,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, mentioned.
SGX Nifty flat: Nifty futures had been trading flat with some positive bias at 14,723 on Singaporean Exchange, indicating a tepid opening for BSE Sensex and Nifty 50 on Tuesday.
Lok Sabha passes Insurance Amendment Bill 2021: The Parliament on Monday authorized a Bill to raise Foreign Direct Investment (FDI) limit in the insurance coverage sector from 49 per cent to 74 per cent with the Lok Sabha passing the proposed law by a voice vote. The Insurance (Amendment) Bill, 2021 was passed by Rajya Sabha final week.
FII and DII trends: On Monday, foreign institutional investors (FIIs) offloaded shares worth Rs 786.98 crore, even though domestic institutional investors (DIIs) lapped up shares worth Rs 542.70 crore on a net basis in the Indian equity industry, according to the provisional information obtainable on the NSE.
Technical speak: If the industry goes above 14800 on Tuesday, the Nifty is probably to go up to 14950/15000, says Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. Tuesday would be a vital day for the industry. “The 14680/14570 levels would be the main supports. Nifty could fall heavily below 14570 levels. Bank Nifty has reached a double bottom at 33350. Small traders can take long positions with a stop loss of 33300 or can take short positions below the 33300 level,” he added.
Global industry: Asian stocks had been trading mixed in early trade on Tuesday. Japan’s Nikkei 225 gained more than half a per cent even though the Topix index was up .33 per cent. South Korea’s Kospi was trading marginally weak. In overnight trade on Wall Street, US stocks completed larger. The Dow Jones Industrial Average closed up .32 per cent. The S&P 500 gained .70 per cent and the Nasdaq Composite added 1.23 per cent.