Nifty may the uptrend continue, but expect some volatility; 5 things to know before opening the bell
National headline indices appear to be entering the new week of trading after a long pause and thanks to gains. The S&P BSE Sensex stood at 59,462 on Friday, adding 130 points or 0.22%. NSE Nifty 50 climbed 39 points or 0.22% to close at 17,698. India’s VIX, the volatility gauge, crashed, falling 4% on Friday to settle at 17.6 levels. Now, ahead of Tuesday’s trade, SGX Nifty was up with gains suggesting a buildup of favorable momentum, signaling a flat to positive start to the day’s trade. Global signals were also positive after Wall Street stock indices closed with gains the previous session.
Global watch: On Wall Street, the NASDAQ climbed 0.62% on Monday, followed by a 0.40% rise in the S&P 500 and 0.45% in the Dow Jones. Among its Asian peers, Shanghai Composite. Hang Seng, Nikkei 225, KOSPI and KOSDAQ were all in the green. TOPIX struggled in the red.
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What the graphs say: On Friday, the Nifty 50 index formed a small positive candle on the daily chart with a minor upper and lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a high wave type candle pattern formation. Having formed this pattern in a narrow range move, the predictability of this pattern might be less. However, the high wave action shows high volatility on the market,” he added.
Levels to watch: “Short-term traders need to liquidate some positions and wait for the dips to come in,” said Apurva Sheth, head of market outlook, Samco Securities. “.Immediate resistance is around 17,800, while 17,600 serves as a decent support,” Seth added. Meanwhile, Nagaraj Shetti believes that the Nifty’s short-term trend continues to be positive with limited range action. “A continuation of the choppy move can be expected for the start of next week and Nifty could possibly reach an upside around 17800-17900 by next week. After placing at the hurdle, the bulls need to be cautious and long positions should be protected with appropriate stop-losses Immediate support is placed at 17560 levels,” he said.
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FII and DII professions: Dalal Street was buoyed by the return of foreign institutional investors (FIIs) this month. On Friday, the FII had pumped Rs 3,040 crore into domestic equities. Domestic Institutional Investors (DIIs), however, ceased their relentless buying. The DIIs withdrew Rs 839 crore from the domestic markets.
IPO Watch: Syrma SGS Technology Limited’s IPO has been subscribed 0.37 times to date. The IPO was opened for subscription on August 12. Retail investors are leading the bid for the company with a 0.69% share subscribed. The case will be closed on Thursday.