Nifty could retest all-time highs soon; 5 things to know before today’s opening bell

Global cues were mixed during the early hours of Wednesday. (Image: REUTERS)

Bulls asserted control on Dalal Street on Tuesday, pushing benchmark indices and the broader markets higher. S&P BSE Sensex gained 383 points or 0.63% to end at 61,350 while NSE Nifty 50 added 143 points or 0.79% to settle at 18,268. Midcap and smallcap indices closed 1-2% higher each. On Wednesday morning, SGX Nifty was down 45 points, hinting at negative momentum building up ahead of the day’s trade. Global cues were mixed during the early hours of the day as Wall Street indices gained but Asian stock markets failed to mirror the up-move. 

Global watch: On Wall Street, Dow Jones closed 0.04% higher, while NASDAQ gained 0.06%. The S&P 500 jumped 0.18%. Among Asian peers, Hang Seng was down 1.63% while Shanghai Composite was down 0.66%. Topix, Nikkei 225, KOSPI, and KOSDAQ were also trading with losses. 

Technical take: Tuesday’s up-move may have negated the recent downtrend, attracting bulls back to Dalal Street. “A long bull candle was formed on the daily chart, which indicate a formation of reversal pattern of the recent downtrend,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This is a positive indication and one may expect further upside in the short term. As happened in the past, there is a higher possibility of Nifty revisiting a recent all-time high of 18605 levels,” he added.

Levels to watch out: Nifty is currently placed at 18,268 and could soon surge higher, according to technical analysts. “Nifty seems set to test 18,450 and any dips can be utilised as buying opportunities,” said Rahul Sharma, Director & Head – Research, JM Financial. He added that Support for Nifty is placed at 18,175 and 18,260. 

FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stocks for the sixth day straight. FIIs pulled out Rs 2,368 crore from domestic equities. Domestic Institutional Investors were, however, net buyers for the fourth consecutive day. DIIs bought stocks worth Rs 1,385 crore.

IPO watch: PB Fintech, the parent company of Policy Bazaar and Paisa Bazaar will enter Dalal Street next week for its IPO. The issue will open on November 1 and close on November 3. The price band for the issue has been set at Rs 940-980 per share.