Domestic benchmark indices soared higher on the weekly expiry session yesterday with the NSE Nifty hitting fresh all-time highs once again. On the closing bell, S&P BSE Sensex was at 57,852 while the NSE Nifty ended the day at 17,234. Broader markets mirrored the up-move and most midcap and smallcap indices outperformed. Bank Nifty surged 0.7% to settle at 36,831. On Friday morning, SGX Nifty was trading flat, hinting at a muted start to the day’s trade. Global cues were largely positive as Wall Street equity indices soared higher during the previous trading session.
Global watch: US stock market ended in the green on Thursday with Dow Jones closing 0.37% higher, followed by the S&P 500 and the NASDAQ. Among Asian stock markets, Shanghai Composite and Hang Seng were down with losses while Nikkei 225, TOPIX, KOSPI and KOSDAQ were up with gains.
Technical take: With yesterday’s up-move, Nifty has negated Wednesday’s negative closing forming a long bull candle, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This pattern has nullified a minor negative/consolidation pattern on the daily chart and this display a strength of upside momentum in the market. This is a positive indication and one may expect more upside in the short term,” he added.
Levels to watch out: “For the trend following traders, 17150 would be the key support level, and above the same, the uptrend structure could continue up to 17300-17350 levels. On the flip side, if the Nifty slips below 17150, it may trigger a quick intraday correction till 17100-17075 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
FII and DII trades: Foreign Institutional Investors (FII) were net buyers of domestic stocks once again, pumpkin in Rs 348 crore. Domestic Institutional Investors (DII) were also net buyers of domestic equities on Thursday. DIIs invested Rs 381 crore in domestic stocks.
IPO watch: Today is the last day to bid for AMI Organics and Vijaya Diagnostic IPOs. So far AMI Organics IPO has been subscribed 3.9 times with all pockets of investors oversubscribing their portion of the issue. Retail investors have bid for the IPO over 6 times their reserved portion. Meanwhile, the IPO of Vijaya Diagnostic Centre has only been subscribed 0.47 times with no investor category having fully subscribed their portion of the issue.