09 Mar , 2022 By : monika singh
Domestic equities snapped their losing streak on Tuesday to end the day in the positive territory. S&P BSE Sensex settled 581 points or 1.1% higher at 53,424 while the NSE Nifty 50 index gained 150 points or 0.95% to end the day at 16,013. Bank Nifty regained 33,100 levels. Ahead of Wednesday’s trade, SGX Nifty was sitting in the green, suggesting a continuation of yesterday’s positive momentum on Dalal Street. Global cues were, however, mixed during the early hours of trade. Volatility has inched lower but still remains above 28 levels.
Global watch: On Wall Street, the S&P 500 index closed 0.72% lower, followed by Dow Jones and the NASDAQ. On the other hand, Asian markets were up in the green. Shanghai Composite, Hang Seng, Topix, and Nikkei 225 were soaring higher.
Technical take: Moving higher on Tuesday, the Nifty 50 index formed a long bull candle on the daily chart, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Normally, such bullish engulfing patterns after reasonable declines or at the supports are indicative of bullish reversal patterns,” he added. Nifty has not only cleared the 15900 resistance but closed above it, which Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities sees as a positive. “After a sharp decline, Nifty has formed a promising long bullish candle that also supports a short term uptrend,” he said.
Levels to watch out: Shrikant Chouhan said that the chart formation shows a short term uptrend while adding that as long as Nifty holds 15900 and 15850 support zone, the reversal formation is likely to continue. Nagaraj Shetti believes that 16250-16400 could offer strong resistance ahead.
FII and DII trades: Foreign Institutional Investors (FII) once again were net sellers of domestic stocks on Dalal Street. FIIs pulled out Rs 8,142 crore from domestic markets on Tuesday. Domestic Institutional Investors (DII) continued buying equities, putting on Rs 6,489 crore.
Call and Put OI: Maximum Call Open Interest is placed at 17000 strike for the March F&O series. This is followed by 16500 strike. Put OI is the most at 16000 strike, followed by 15500 strike.
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