BSE Sensex and Nifty 50 have been eyeing a positive start out on Wednesday, a day just before weekly F&O expiry, as recommended by trends on SGX Nifty. In the early trade, Nifty futures have been trading 39.50 points or .23 per cent up at 17,418.50 on Singaporean Exchange. A host of elements such as Cabinet meeting, T+1 settlement cycle for completion of share transactions, stock-certain action, oil costs, rupee movement and other worldwide cues will be amongst guiding elements for Indian stock industry. “Going ahead the positive momentum is likely to sustain as the sentiments remain quite constructive, supported by improving economic data and positive earnings expectation. Strong liquidity and positive global cues are also likely to support domestic markets to continue their movements to record levels,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Global watch: Asian stock markets have been seen trading mixed in early trade on Wednesday. Japan’s Nikkei 225 rose .48 per cent whilst the Topix index gained .51 per cent. Elsewhere, South Korea’s Kospi fell .25 per cent whilst the S&P/ASX 200 in Australia declined .27 per cent. In overnight trade on Wall Street, Down Jones and S&P 500 fell. The Dow Jones Industrial Average was down .78 per cent, the S&P 500 was down .40 per cent, and the Nasdaq Composite was up .03 per cent.
Technical speak: Analysts say just after witnessing an 800 points rally, the index is exhibiting a variety-bound trend, which indicates that bulls could be feeling discomfort to go additional extended close to 17450. “But technically, a short term correction is possible only if the index falls below 17290. For the next few trading sessions, 17290 could act as a trend deciding level, above which we can expect one more uptrend wave towards 17450-17500 levels. However, trading below the same could trigger a quick intraday correction up to 17250-17210,” Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities, mentioned.
FII and DII activity: On Tuesday, foreign institutional investors (FIIs) offloaded shares worth Rs 145.45 crore, whilst domestic institutional investors (DIIs) sold shares worth Rs 136.57 crore on a net basis in the Indian share industry.
Sebi introduces T+1 settlement cycle: Capital markets regulator Sebi on Tuesday introduced T+1 settlement cycle for completion of share transactions on optional basis in a move to boost industry liquidity. Currently, trades on the Indian stock exchanges are settled in two working days just after the transaction is completed (T+2).
Sansera Engineering IPO opens Sep 14: Sansera Engineering’s initial public present to open for subscription on 14 September and close on 16 September. The IPO consists of a pure present for sale of 17.24 million shares by its current shareholders and promoters.