Domestic equity markets ended in the red for the third consecutive day on Tuesday. S&P BSE Sensex now sits at 50,363 points while the 50-stock NSE Nifty is at 14,910. Stock markets have been consolidating for a while now as bond yields rise and inflation worries emerge. Technically, Nifty not showing any significant decline on Tuesday, after two days of sharp weakness could be a slight positive indication, said Nagaraj Shetti, Technical Research, Analyst, HDFC Securities. SGX Nifty was up 44 points on Wednesday morning, hinting at a gap-up start for equities.
Global watch: On Tuesday, NASDAQ closed flat with positive bias but Dow Jones and S&P 500 slipped into the negative. Asian peers were trading mixed on Wednesday morning. Shanghai Composite, KOSPI, KOSDAQ were down in the red. Hang Seng and Nikkei 225 were trading with gains while TOPIX was flat.
Technical take: The medium-term trend for Nifty is still positive. “Tuesday’s small range movement could signal a repetition of recent upside bounce of the early part of the March. Hence, one may expect upside recovery in the market from here or from slightly lower levels in the next few sessions,” Nagaraj Shetti said. For the coming session, he expects Nifty to trade sideways.
Levels to watch out for: Domestic markets could remain on the sidelines till the FOMC meeting later this week, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. He added that investors need to keep an eye on the 14750/49800 and 15100/51000 range. “Long positions should be bought between the levels of 14750/14800 (49800/50000) with a stop loss of 14700/49600 in the near future.”
IPO Watch: Today the IPOs of Craftsman Automation and Laxmi Organic Industries close after the three-day subscription period. So far Craftsman Automation has been subscribed 1.26 times and Laxmi Organic Industries IPO has been subscribed 6 times with all categories oversubscribing the issue. Further, Kalyan Jewellers was subscribed 60% on the first day. Add to the IPO fever, today the issues of Nazara Technologies and Suryoday Small Finance Bank will open.
FII and DII trades: Foreign Institutional Investors (FII) turned net buyers of domestic stocks after three days of selling. FIIs pumped in Rs 1,692 crore on Tuesday. Domestic Institutional Investors (DII) were again net sellers, pulling out Rs 1,168 crore.
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