Domestic equity markets continued to rise on Wednesday as headline indices moved closer to their all-time highs. On the closing bell, S&P BSE Sensex was sitting at 51,017 while the Nifty 50 ended the day at 15,301. All sectoral indices, except Nifty Metal and the PSU Bank index, closed with gains. On Thursday morning, ahead of the monthly F&O expiry session, SGX Nifty was sitting in the positive territory. Cues from global peers were mixed on Thursday. Wall Street benchmarks closed with gains while most Asian peers were down in the negative during the early hours of trade.
Global cues: Wall Street inched higher on Wednesday. The tech-heavy NASDAQ was up 0.59%, S&P 500 gained 0.19%, while the Dow Jones closed flat with a positive bias. However, Asian peers were seen moving south on Thursday morning. Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSDAQ, and KOSPI were all in the red.
Technical take: Nifty is now placed near the resistance zone of around 15350-15450 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Nifty not showing any sharp reversal from the highs so far could be a positive indication. As long as this strength of uptrend continues for the next 1-2 sessions, one may expect a decisive upside breakout of the hurdle at 15450 levels,” he added.
Levels to watch out for: Nifty now needs to sustain above 15,300 to reach fresh highs. “We have a good support range at 15,000 and hence can buy into corrections. As long as the Nifty maintains 15,000 on a closing basis, we are in bullish territory,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments. Meanwhile, Nagaraj Shetti believes if Nifty holds its ground, 15,800 could be the next target.
Volatility index: India VIX, the volatility gauge, has come down more than 20% so far this month. However, yesterday the index which is often referred to as the fear gauge, climbed 11% to sit at 20.87. This is the sharpest move charted by the volatility index this month.
FII and DII trades: Foreign Institutional Investors (FII) continued to pump money into domestic stock markets on Wednesday. FIIs were net buyers of Rs 241 crore worth of domestic securities. Domestic Institutional Investors (DII) were net sellers again, pulling out Rs 438 crore.