Domestic stock markets climbed higher on Wednesday, rebounding strongly after weak initial few hours of trade. S&P BSE Sensex gained 0.25% to end at 52,904 while Nifty 50 jumped 0.26% and closed at 15,853. Benchmark indices outperformed broader markets, except Smallcap indices. On Thursday morning, ahead of the weekly expiry session, SGX Nifty was up in the green signalling positive momentum ahead of the day’s trade. Global cues were mixed after Wall Street equity indices closed in opposite directions.
Global cues: Dow Jones closed 0.13% higher on Wednesday, while S&P 500 gained 0.12%. NASDAQ, however, closed in the red. Among Asian peers, Shanghai Composite, Topix, and Nikkei 225 were in the red while Hang Seng, KOSPI, and KOSDAQ were trading with gains.
Technical take: Nifty moved higher and formed a reasonable long candle on the daily chart with minor lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This action signal range bound action in the market with buy on dips opportunity. The Nifty is nearing a crucial overhead resistance of 15900 levels and made a swing high of 15877 on Wednesday,” he added.
Levels to watch out: Nifty has been in a long-fought battle to cross 15,900 now. “On Thursday, on the day of the weekly expiry of Index options, we would see the levels of 15950/53200 in the near term in case the Nifty/Sensex survive above the levels of 15800/52700,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “On the other hand, below the levels of 15800/52700, benchmark indices would find support at 15760/52550 and at 15740/52450 levels. A close below the level of 15760/ 52550 would be negative for the market,” he added.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stocks on Wednesday, pulling out Rs 1,303 crore. Domestic Institutional Investors (DII), on the other hand, were net buyers of domestic equities, pumping in Rs 1,335 crore.
Zomato IPO: The initial public offering of Zomato was oversubscribed on the first day of the sale as retail investors and qualified institutional buyers oversubscribing their respective portions. Zomato’s Rs 9,375 crore IPO will remain open for investors to subscribe to till Friday evening. The food tech unicorn is first among the many startups expected to debut on Dalal Street in the coming years.