Correction in broader markets continued on Tuesday.
(Image: REUTERS)Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity markets moved between gains and losses on Tuesday but managed to end the day with gains. S&P BSE Sensex was at 54,554 on the closing bell while NSE Nifty 50 ended the day at 16,280. Broader markets underperformed with smallcap and midcap indices continuing to move southwards. On Wednesday morning, SGX Nifty was up in the green, signalling positive momentum build-up ahead of the opening bell. Cues from global peers were largely positive. On Wall Street, Dow Jones and S&P 500 zoomed ahead while the NASDAQ ended in the red. Among Asian peers, only KOSPI was in the red while others gained.
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Highlights
"Nifty is expected to open positive, up by about 40 points at 16310 levels. For the last few days, Nifty had been trading in the 16180 to 16360 range. On the break of 16360 on a closing basis with higher than average volumes, Nifty can test 16450 and 16500 levels in the next few days. Bank Nifty can test 37000 levels if it closes above 36200 with good volumes. The trend in Nifty will remain bullish as long as it is trading above 15900 levels," said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
Domestic benchmark indices continue to move higher while broader markets witness a correction. Nifty and Sensex scaled fresh all-time highs yesterday while midcap and smallcap indices on NSE were down 2% or more. On the charts, Nifty formed a small positive candle was formed with upper and lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this action signal a formation of high wave-type candle pattern. Normally, such high wave formation after a reasonable upmove or decline more often act as a reversal. But, having formed this pattern amid sideways range movement, the significant predictive value is ruled out,” he added.
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In the last week, the benchmark index Nifty/ Sensex first time hit the 16000/ 53500 mark and also registered fresh all-time highs of 16349.45 and 54633.58, respectively. Technically, on weekly charts, the Nifty/ Sensex has formed a strong breakout formation, which indicates a further uptrend from current levels. Post breakout the Nifty is consolidating and the intraday charts suggest narrow rage activity likely to continue in the near future. We are of the view that the medium-term trend is bullish and buying on dips and sell on rallies would be the ideal strategy for the positional traders. 16150-16050 /54000-53500 would be the strong support zone. Trading above the same uptrend wave is likely to continue till 16400-16550/ 54700-55000. Below 16050/ 53500 breakout traders may prefer to exit from trading long positions.
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"Going ahead, the market would be tracking global cues for the further direction in the market. Passage of infrastructure bill by US Senate will be the key event and would propel positive momentum in the market. However, volatility around the US Fed taper talk continues to worry the investors. Apart from this, the market would also keep an eye on US and China inflation data along with UK GDP data, due later this week. Overall, we expect positive momentum in the market on account of strong domestic economic data, impressive quarterly results and unlocking in various states," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
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SGX Nifty was trading 16 points higher on Wednesday morning. Nifty futures trading with gains, hint at some positive momentum ahead of the day's opening bell.