Domestic equity markets witnessed promoting in the dying hour of trade on Monday but headline indices managed to close with gains. S&P BSE Sensex settled at 60,135 points although Nifty 50 closed at 17,945 — each soon after getting touched their respective new all-time highs. Broader markets outperformed benchmarks and soared larger. Bank Nifty closed 1.37% larger. On Tuesday morning, SGX Nifty was trading with losses, hinting at a gap-down begin to the day’s trade. Global cues have been adverse soon after Wall Street equity indices closed with losses on Monday and Asian stock markets mirrored the fall for the duration of the early hours of trade today.
Global watch: On Wall Street, Dow Jones closed .72% reduce on Monday, followed by a .69% fall in S&P 500 and .64% drop in NASDAQ. Asian stock markets mirrored the fall with Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ all trading with losses.
Technical take: Nifty soared larger on Monday morning but slipped from highs for the duration of the fag-finish of the day’s trade. “Zooming into the Nifty 60 min charts, we can observe that although the index has corrected from the highs, it continues to trade above the 20 and 50 period MA on the 60 min charts and is consolidating in a range,” mentioned Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. He added that consolidation just beneath all-time highs is a positive indication that the industry is creating strength just before an eventual breakout. Holding a contrarian view, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities mentioned that the industry has formed a shooting star pattern at the major of the rally, which is an indication of uncertainty in the industry.
Levels to watch out for: Shrikant Chouhan believes that investors need to lower the weak extended positions in the industry to the resistance levels that exist at 17980, 18040 and 18080. “If the Nifty forms a positive reversal after hitting the major supports that exist at 17850 or 17810, a buy call is advised. In case, the Nifty closes below the 17800 level, it could weaken further to the 17600 level,” he added.
FII and DII trades: Foreign Institutional Investors (FII) have been net sellers of domestic stocks for the fifth consecutive trading session on Monday. FIIs pulled out Rs 373 crore. Domestic Institutional Investors (DII) have been also net sellers, pulling out Rs 1,303 crore.
Results today: Bhansali Engineering Polymers, DRC Systems India, GM Breweries, IndBank Merchant Banking Services, Ind Bank Housing, and JTL Infra are some of the providers that will announce their quarterly final results today.