Domestic benchmark indices marched higher on Monday while correction in broader markets continued. S&P BSE Sensex now sits at 54,402 points while the NSE Nifty 50 is at 16,258. Bank Nifty jumped 0.61% to cross the 36,000 mark. On Tuesday morning, SGX Nifty was in the red, hinting at negative momentum ahead of the day’s opening bell. Cues from global peers were mixed with Wall Street indices ending the previous day mixed and Asian markets mirroring that trend. On the charts, analysts are suggesting a ‘buy on dip’ strategy seeing that the overall momentum is positive. Once we cross 16,300, we can scale higher to 16,500-16,600, said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Global watch: Dow Jones ended 0.30% lower while S&P 500 closed 0.09% down overnight, while NASDAQ was up 0.16%. Among Asian markets, Shanghai Composite, Hang Seng, KOSPI, and KOSDAQ were down in the red. Nikkei 225 and TOPIX were up with gains.
Technical take: Nifty continues to sit above 16,000 mark. “After a sharp upside breakout of the broader high low range at 16K levels recently, the underlying shifting into a narrow range movement without showing any major decline could be considered as a breather pattern and this action indicate a buy on dips opportunity near the upside breakout point around 16100-16200 levels, as per the concept change in polarity,”-said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out for: Nifty is now consolidating in the range of 16300-16150 level, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “However, the larger breakout continuation texture is still on the positive side and could continue in the short run. For the day traders, the 16180/16150 level would be strong support, and as long as it’s trading above the same the uptrend is intact. On the other hand, the 16300 level would be the immediate hurdle for Nifty and above the same the continuation formation is likely to continue up to 16350-16375 levels,” he added.
FII and DII trades: Foreign Institutional Investors (FII) pumped in Rs 212 crore on Monday. Domestic Institutional Investors (DII) were net sellers on the day, pulling out Rs 716 crore.
IPO watch: On the first day of bidding, Cartrade Tech’s IPO was subscribed 41% by investors. Retail investors have subscribed their portion 80%. Nuvoco Vistas Corporation IPO was subscribed 16% on the first day. Today, two more IPOs will open for investors. Chemplast Sanmar and Aptus Housing Finance India are looking to raise more than Rs 6,600 crore from the primary markets.