SGX Nifty hints at positive start for Sensex, Nifty on LIC share listing day; 5 things to know before opening
After six consecutive days of losses, Sensex and Nifty broke away from the downward trend and moved higher on Monday. S&P BSE Sensex ended 180 points or 0.34% up at 52,974, while NSE Nifty 50 index was up 0.4% or 60 points at 15,845. Bank Nifty gained 1.44% while India VIX, the volatility gauge, jumped 4% to breach 24 levels. Entering the second day of trade, SGX Nifty was up with gains, suggesting a continuation of yesterday’s up-move. Global cues were mixed after Dow Jones gained while S&P 500 and the NASDAQ closed with losses. Asian markets were largely in green.
LIC shares to list today: Shares of India’s largest-ever public issue, LIC will list on the stock exchanges today. The mega IPO was oversubscribed nearly 3 times by investors earlier this month. In the grey market shares of LIC have been lagging, suggesting a weak debut on Dalal Street.
Global watch: On Wall Street, Dow Jones gained 0.08% while the NASDAQ index fell 1.2% and S&P 500 fell 0.39%. Among Asian stock markets, Shanghai Composite was down with losses while Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all trading with gains.
What do the charts say: Although the Nifty 50 index bounced back on Monday, Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities said that the index has been making lower tops on the 15 min chart. “This is not a sign of strength and therefore caution is warranted. Also, the index remains in a downtrend. The 20 period MA on the 15 min chart remains below the 50 period MA indicating the negative moving average crossover is intact,” he added.
Levels to watch out for: Subash Gangadharan said that Nifty will find support at 15671, indicating there is a possibility of a bounce-back in the very near term. “A pullback rally is possible only if the Nifty convincingly takes out the recent highs of 16084,” he added. Meanwhile, Ruchit Jain of 5paisa said that the previous swing low of March 2022 is also around 15670 and thus, 15670-15735 is the important support zone now for the index. “On the flipside, the recent downtrend has been so strong that inspite of oversold set ups, we have not seen any strength to pull the indices higher. Only if the index closes above 16000 mark, then we could expect a price-wise pullback in the short term,” he added.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers once again on Monday. FIIs pulled out Rs 1,788 crore from domestic markets. Domestic Institutional Investors (DII) were once again net buyers, pumping Rs 1,428 crore.