BSE Sensex and Nifty 50 were eyeing a positive start on Wednesday, a day before weekly F&O expiry, as suggested by trends on SGX Nifty. In the early trade, Nifty futures were trading 39.50 points or 0.23 per cent up at 17,418.50 on Singaporean Exchange. A host of factors such as Cabinet meeting, T+1 settlement cycle for completion of share transactions, stock-specific action, oil prices, rupee movement and other global cues will be among guiding factors for Indian stock market. “Going ahead the positive momentum is likely to sustain as the sentiments remain quite constructive, supported by improving economic data and positive earnings expectation. Strong liquidity and positive global cues are also likely to support domestic markets to continue their movements to record levels,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Global watch: Asian stock markets were seen trading mixed in early trade on Wednesday. Japan’s Nikkei 225 rose 0.48 per cent while the Topix index gained 0.51 per cent. Elsewhere, South Korea’s Kospi fell 0.25 per cent while the S&P/ASX 200 in Australia declined 0.27 per cent. In overnight trade on Wall Street, Down Jones and S&P 500 fell. The Dow Jones Industrial Average was down 0.78 per cent, the S&P 500 was down 0.40 per cent, and the Nasdaq Composite was up 0.03 per cent.
Technical talk: Analysts say after witnessing an 800 points rally, the index is exhibiting a range-bound trend, which indicates that bulls could be feeling discomfort to go further long near 17450. “But technically, a short term correction is possible only if the index falls below 17290. For the next few trading sessions, 17290 could act as a trend deciding level, above which we can expect one more uptrend wave towards 17450-17500 levels. However, trading below the same could trigger a quick intraday correction up to 17250-17210,” Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities, said.
FII and DII activity: On Tuesday, foreign institutional investors (FIIs) offloaded shares worth Rs 145.45 crore, while domestic institutional investors (DIIs) sold shares worth Rs 136.57 crore on a net basis in the Indian share market.
Sebi introduces T+1 settlement cycle: Capital markets regulator Sebi on Tuesday introduced T+1 settlement cycle for completion of share transactions on optional basis in a move to enhance market liquidity. Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done (T+2).
Sansera Engineering IPO opens Sep 14: Sansera Engineering’s initial public offer to open for subscription on 14 September and close on 16 September. The IPO consists of a pure offer for sale of 17.24 million shares by its existing shareholders and promoters.