04 May , 2022 By : monika singh
Domestic equity markets return to action today after a brief one-day break. S&P BSE Sensex is currently sitting at 56,975 points while NSE Nifty 50 is at 17,069 — both down nearly 0.20% so far this week. Volatility has soared higher, regaining 20 levels once again. Ahead of Wednesday’s trade, SGX Nifty was up 100 points suggesting a positive opening for Dalal Street while global cues were largely positive with Wall Street equity indices having ended in the green on Tuesday. Investors will be keenly watching the opening of LIC’s IPO today, which is the largest public issue ever to enter Dalal Street.
Global watch: On Wall Street, S&P 500 zoomed 0.48% on Tuesday, followed by NASDAQ and the Dow Jones index. Among Asian stock markets, KOSPI gained while Hang Seng and KOSDAQ were down in the red. Chinese and Japanese stock markets were closed for local holidays.
LIC IPO opens today: LIC (Life Insurance Corporation of India) IPO will open for investors to bid for. The issue is going to be the largest ever to enter Dalal Street at Rs 21,000 crore. LIC has already raised Rs 5,627 crore from anchor investors. Of the total anchor book portion, 71% was allotted to 15 domestic mutual funds while demand from foreign investors remained subdued. LIC IPO will close on May 9.
What do the charts say: With the Nifty’s flattish movement on Monday, the index formed a long bull candle on the daily chart, which indicates a range bound action in the market at the support of 16900 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that the short-term trend for the index remains choppy.
Levels to watch out for: Nifty 50 has traded in the broad range of 16800-17400 in the last few weeks. “We expect the index to unfold a directional move only on a breakout beyond the above-mentioned range. Till then, one should be very stock specific and avoid aggressive trades,” said Ruchit Jain, Lead Research, 5paisa.com. “On pullback moves, the immediate resistances are around 17200 and 17400,” he added. Nagaraj Shetti sees support at 16900.
FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stock on Monday. FIIs sold domestic shares worth Rs 1,853 crore on Monday. Domestic Institutional Investors continued to be net buyers. DIIs bought stock worth Rs 1,951 crore.
0 Comment