Stock markets slipped on Wednesday amid weaker international cues and profit-booking by investors. S&P BSE Sensex closed 400 points reduce at 51,703 when the 50-stock NSE Nifty ended the day 104 points down at 15,208. Although the benchmarks slipped, broader markets did show some strength throughout the day’s trade as midcap and smallcap indices closed in the positive territory. Volatility index or the worry gauge of domestic equities, slipped more than 1% to move beneath 22 levels. On Thursday morning, SGX Nifty was trading with gains. Stock markets could witness volatility owing to the weekly expiry today.
Global watch: Once once again on Wall Street, Dow Jones gained when S&P 500 and NASDAQ ended in the red. Among Asain equity markets, Shanghai Composite was up in the green, when Hang Seng, TOPIX, KOSPI, and KOSDAQ had been down with losses. Nikkei 225 was trading flat with a positive bias.
Technical take: Wednesday’s session on Nifty formed a Bearish candle on the day-to-day scale, according to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. He added that Nifty’s moving pattern has now negated its formation of larger highs – larger lows of the final 4 trading sessions. But, the strength in the broader markets is exactly where Nagaraj Shetti, Technical Research Analyst at HDFC Securities finds hope. However, in the coming sessions, Shetti expects more appropriate with higher volatility.
Support and Resistance levels: In terms of levels that investors should really maintain an eye on, Shrikant Chouhan, Executive Vice President at Kotak Securities stated that moving beneath 15170/51550 levels, markets could fall to 15080/51350 or 14980/51250. “A decisive break of 15330/51330, would result in a sharp pullback to 15450/52500 levels. The strategy should be to buy in deep panic around 15000/51200 levels with a stop loss at 14900/50900 levels,” he added.
IPO watch: Nureca’s initial public supplying closed for subscription yesterday with bids for 39.93 occasions the challenge. Retail investors bid for the IPO a huge 166.65 occasions. Today, RailTel’s initial public supplying closes. The Rs 820 crore challenge has so far been oversubscribed by all portions, with retail investors bidding for 10.54 occasions their quota. QIBs and NIIs have also oversubscribed the public challenge practically 3 occasions every. Employees of the firm have bid for 1.85 occasions their portion.
FII and DII activity: Foreign Institutional Investors (FII) pumped in Rs 1,008 crore into stock markets yesterday. FIIs had been also bet purchasers of Index selection but had been noticed pulling revenue away from Index futures and Stock futures and solutions. Domestic Institutional Investors (DII) pulled Rs 1,283 crore away from domestic securities.