Domestic equity markets witnessed selling 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 while Nifty 50 closed at 17,945 — after having touched their respective new all-time highs. Broader markets outperformed benchmarks and soared higher. Bank Nifty closed 1.37% higher. On Tuesday morning, SGX Nifty was trading with losses, hinting at a gap-down start to the day’s trade. Global cues were negative after Wall Street equity indices closed with losses on Monday and Asian stock markets mirrored the fall during the early hours of trade today.
Global watch: On Wall Street, Dow Jones closed 0.72% lower on Monday, followed by a 0.69% fall in S&P 500 and 0.64% 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 higher on Monday morning but slipped from highs during the fag-end 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,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. He added that consolidation just below all-time highs is a positive indication that the market is building strength before an eventual breakout. Holding a contrarian view, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said that the market has formed a shooting star pattern at the top of the rally, which is an indication of uncertainty in the market.
Levels to watch out for: Shrikant Chouhan believes that investors should reduce the weak long positions in the market 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) were net sellers of domestic stocks for the fifth consecutive trading session on Monday. FIIs pulled out Rs 373 crore. Domestic Institutional Investors (DII) were 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 companies that will announce their quarterly results today.