Dalal Street kickstarted the week with S&P BSE Sensex and NSE Nifty each ending with losses when broader markets surged larger. Sensex closed yesterday’s session at 58,177 points or .22% reduce when Nifty 50 ended at 17355 or .08% reduce. Bank Nifty ended the session .58% down. Midcap and smallcap indices on each BSE and NSE closed with gains. Entering Tuesday’s trading session, SGX Nifty was up in the green, hinting at positive momentum make-up ahead of the day’s trade. Global cues have been mixed on Tuesday morning right after Wall Street equity indices closed in either path.
Global watch: On Wall Street, Dow Jones zoomed .76% larger when S&P 500 jumped .23%. However, the tech-heavy NASDAQ slipped .07% to close with losses. Among Asian stock markets, Hang Seng and Shanghai Composite have been down with losses when Nikkei 225, TOPIX, KOSPI, and KOSDAQ have been up with gains.
Technical take: The weak industry movement on Monday helped Nifty type a compact candle on the every day timeframe chart with lengthy reduce shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a sideways range movement in the market. The market action of the last five sessions signals a lack of sharp selling participation in the market from the new highs. This pattern could eventually result in an upside breakout of the sideways range in the short term,” he added.
Levels to watch out: Nifty 50 has managed to sustain above 17,300 for the last handful of trading session. “Over the last four days, Nifty has been hovering between 17,250 to 17,435 levels. At the same time, the Nifty is consistently taking support at 17,250. As long as the index is trading above 17,250, the bullish formation is likely to continue up to 17,450 -17,500 levels. However, trading below the same could possibly trigger correction up to 17,200-17,150 levels,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd.
FII and DII trades: For the second straight trading session Foreign Institutional Investors (FII) have been net purchasers of domestic stocks. FIIs pumped in Rs 1,419 crore into equities on Monday. Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 559 crore.
IPO watch: Investors will be eyeing the listing of Ami Organics and Vijaya Diagnostic shares today. Ami Organics IPO was subscribed more than 64 occasions by investors and the public problem of Vijaya Diagnostic Centre was subscribed more than 4 occasions. Ami Organics was trading at a premium in the grey industry but shares of Vijaya Diagnostic have been down trading at a discount. Investors will also hold tabs on Sansera Engineering IPO that opens today for subscription.