SGX Nifty trades with gains; 5 things to know before today’s opening bell

Cues from global peers were mixed on Thursday morning. (Image: REUTERS)

Dalal Street benchmark indices closed flat on Wednesday, a day after hitting fresh all-time highs. On the closing bell, S&P BSE Sensex was down 28 points at 54,526 while the Nifty 50 was up 2 points at 16,282. Broader markets ended with losses, except Nifty Midcap 50, which was up 0.26%. SGX Nifty was up in the green as it enters the expiry session, hinting at positive momentum building up ahead of the opening bell. Cues from global peers were mixed with Asian stock markets moving in different directions during the early hours of trade on Thursday.

Global watch: On Wall Street, Dow Jones and S&P 500 closed 0.62% and 0.25% higher on Wednesday while NASDAQ was down 0.16% on closing. Among Asian markets, Shanghai Composite and Hang Seng were down in the red, but Nikkei 225, TOPIX, and KOSDAQ were up with gains, KOSPI was trading flat. 

Technical take: Chartists believe domestic markets have once again started moving in a range post the breakout above 16,000. “A small negative candle was formed on the daily chart with long lower shadow. Technically, this pattern signals a broader high low range movement for the market with buy on dips at the lower range. This pattern doesn’t have any predictive value and the market seems to have shifted into another round of narrow range movement post upside breakout of larger range movement at 16K recently,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch out for: For Nifty the 16,180 would be the key support level and trading above the same could see the uptrend formation likely to continue up to 16,350, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. “Any further upside in the market may lift the index up to 16,400-16,425 levels. On the flip side, the uptrend would be vulnerable below 16,180,” he added.

FII and DII trades: Foreign Institutional Investors (FII) were net buyers of domestic securities on Wednesday, pumping in Rs 238 crore. Domestic Institutional Investors (DII) were also net buyers. DIIs bought stocks worth Rs 206 crore on Wednesday. 

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