Sensex and Nifty have slipped for 3 consecutive sessions now. After Thursday’s fall, BSE Sensex now sits at 51,324 when the 50-stock NSE Nifty is at 15,118 points. However, defying the benchmark indices, broader markets have continued to show strength and inched larger. The consolidation in domestic markets could continue, according to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. He added that the weakness in markets could stay till issues more than increasing inflation recede. On Friday morning, SGX Nifty was down 45 points, hinting at a gap-down start off.
Global watch: On Wall Street, Dow Jones, S&P 500, and the tech-heavy NASDAQ all ended in the red. The fall came immediately after reports claimed that the unemployment price rose more than anticipated in the United States. Among Asian nations, Shanghai Composite, Hang Seng, TOPIX, Nikkei 225, KOSPI, and KOSDAQ followed the American peers and moved reduce throughout the early hours of trade.
Technical take: On the charts, the all round industry breadth continues to be positive with broader markets moving larger. “This is a positive indication and signal lack of inherent strength in current market declines,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Stock markets are anticipated to continue their narrow variety activity with PSUs and midcaps outperforming, mentioned Shrikant Chouhan, Executive Vice President, Kotak Securities. “Technically, on daily charts index, maintain higher bottom series formation and the texture of the market suggests uptrend likely to continue if the Nifty/ Sensex succeed to trade above 15050/51000,” he added.
Levels to watch out for: Shrikant Chouhan believes that above 15050/51000, stock markets up to 15250, 15330/ 51900, 52300. On the flip side, dismissal of 15060 would outcome in additional weakness and in that case, Nifty/Sensex could retest earlier lows of 14970/50840. He believes the concentrate need to be on largecap organizations. Meanwhile, Nagaraj Shetti is expecting a bounce back in Nifty from the lows of 15,000. However, he cautions of additional weakness if the index falls under 14,950.
FII and DII activity: Foreign Institutional Investors (FII) had been net purchasers of Rs 903 crore worth domestic securities on Thursday. FIIs had been also net purchasers of Index selection worth Rs 3,568 crore. On the other hand, Domestic Institutional Investors (DII) had been net sellers of stocks worth Rs 1,217 crore.