Bears continued to assert manage on Dalal Street, forcing the benchmark indices to close in the red for the third day straight on Wednesday. S&P BSE Sensex ended Wednesday’s session 135 points or .26% reduce at 52,443 when the NSE Nifty 50 ended .24% in the red at 15,709. Broader markets mirrored the benchmark indices, except Nifty Next 50, which closed in the green. Nifty IT and Nifty Metal had been the only gainers amongst sectoral indices. Entering the month-to-month expiry session, SGX Nifty was trading flat hinting at a weak to muted start off for domestic equities. Global cues had been mixed right after Wall Street equity indices ended in opposite directions.
IPO watch: Tatva Chintan Pharma shares will start trading on the stock exchanges today. The IPO was subscribed a enormous 180 instances last week. Tatva Chintan Pharma was commanding a powerful premium ahead of its stock industry debut. On the other hand, today is the last day for investors to bid for Glenmark Life Sciences IPO, which has been subscribed 5.9 instances so far. The IPO of Rolex Rings will enter the second day of sale, so far the concern has been subscribed 3.84 instances.
Global cues: On Wall Street, NASDAQ ended .70% larger on Wednesday when Dow Jones and S&P 500 closed with losses. Among Asian peers, Hang Seng was up practically 2%, followed by Shanghai Composite. Nikkei 225, TOPIX, and KOSDAQ had been also in green but KOSPI was down in red.
Technical take: Although Nifty rebounded yesterday from intraday lows, but nevertheless failed to close with gains. “A small negative candle was formed on the daily chart with long lower shadow,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This pattern signal a formation of hammer type candlestick pattern. Normally, a formation of such hammer pattern after a reasonable decline or near the crucial supports could act as an upside reversal on the confirmation. Hence, there is a possibility of an upside bounce in the next 1-2 sessions,” he added.
Levels to watch out: Nifty has been trading in a variety for the last handful of weeks now. “On Thursday, the market could remain in the trading range of 15800 and 15600. As the market has re-entered the trading range, the levels of 15600 would act as a major support and 15800 would be a major obstacle,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII watch: Foreign Institutional Investors (FII) pulled out Rs 2,274 crore from domestic markets on Wednesday. FIIs have been net sellers so far this week. Domestic Institutional Investors (DII), on the other hand, had been net purchasers, pumping in Rs 921 crore.