Domestic equity markets continued to rise on Wednesday as headline indices moved closer to their all-time highs. On the closing bell, S&P BSE Sensex was sitting at 51,017 though the Nifty 50 ended the day at 15,301. All sectoral indices, except Nifty Metal and the PSU Bank index, closed with gains. On Thursday morning, ahead of the month-to-month F&O expiry session, SGX Nifty was sitting in the positive territory. Cues from international peers had been mixed on Thursday. Wall Street benchmarks closed with gains though most Asian peers had been down in the unfavorable for the duration of the early hours of trade.
Global cues: Wall Street inched larger on Wednesday. The tech-heavy NASDAQ was up .59%, S&P 500 gained .19%, though the Dow Jones closed flat with a positive bias. However, Asian peers had been seen moving south on Thursday morning. Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSDAQ, and KOSPI had been all in the red.
Technical take: Nifty is now placed close to the resistance zone of about 15350-15450 levels, mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Nifty not showing any sharp reversal from the highs so far could be a positive indication. As long as this strength of uptrend continues for the next 1-2 sessions, one may expect a decisive upside breakout of the hurdle at 15450 levels,” he added.
Levels to watch out for: Nifty now desires to sustain above 15,300 to attain fresh highs. “We have a good support range at 15,000 and hence can buy into corrections. As long as the Nifty maintains 15,000 on a closing basis, we are in bullish territory,” mentioned Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments. Meanwhile, Nagaraj Shetti believes if Nifty holds its ground, 15,800 could be the next target.
Volatility index: India VIX, the volatility gauge, has come down more than 20% so far this month. However, yesterday the index which is usually referred to as the worry gauge, climbed 11% to sit at 20.87. This is the sharpest move charted by the volatility index this month.
FII and DII trades: Foreign Institutional Investors (FII) continued to pump revenue into domestic stock markets on Wednesday. FIIs had been net purchasers of Rs 241 crore worth of domestic securities. Domestic Institutional Investors (DII) had been net sellers once more, pulling out Rs 438 crore.