Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic stock markets were in the green on Tuesday. S&P BSE Sensex rallied 1,000 points regaining 56,800 while NSE Nifty 50 was up 300 points, sitting just above 16,900. Bank Nifty zoomed 1.6%, just shy of 35,000, while India VIX was 6% lower. Broader markets were mirroring the up-move charted by benchmarks. Tata Steel was the top gainer on Sensex, up 4%, followed by HCL Technologies, Tech Mahindra, and Larsen & Toubro. Power Grid was down 2% as the only Sensex stock to trade with losses.
The breach of key support of 16800 along with lower high-low formation signifies extended correction. We believe, for a meaningful pullback to materialise index need to form a higher high-low on the closing basis. Key point to highlight is that, over past six sessions index has declined 1230 points that hauled daily and weekly stochastic oscillator in oversold territory (placed at 13). We expect volatility to gradually subside near oversold territory which would help Nifty to find supportive efforts in the range of 16300-16200
~ ICICI Direct
CMS Info Systems’ Rs 1,100 crore IPO (Initial Public Offering) opened for subscription today. The cash management company’s IPO is entirely an offer for sale (OFS) by existing shareholders of the company, who are looking to sell a total of 5.3 crore equity shares. Ahead of the IPO the company has managed to raise Rs 330 crore by allotting 1.52 crore equity shares at Rs 216 per equity share to 12 anchor investors. CMS Info Systems IPO among the long list of companies that have tapped primary markets to raise funds this month. The IPO will close for subscription on Thursday.
Softbank-backed e-commerce platform Snapdeal filed for an IPO (Initial Public Offering) today. The company is looking to raise Rs 1,250 crore through a fresh issue of equity shares and an offer for sale (OFS) of 3.8 crore equity shares by existing shareholders of the company. Selling shareholders include Sequoia Capital, Kenneth Stuart Glass, Starfish I, Myriad Opportunities Master Fund, among others. According to the DRHP, Softbank will not be selling its stake through the planned IPO. The company said it may raise Rs 250 crore through a pre-IPO placement.
E-Commerce platform, Snapdeal, has filed for an IPO today. The company is backed by Softbank.
While the markets have opened with a gap up, traders should be cautious and not take hasty buy decisions. The trend continues to remain down and strategic methods can be adopted to find short-selling opportunities. The resistance level for the Nifty is 17150-17200 and until that is not conquered, we are in an established downtrend.
~ Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
It was only after fully achieving our target of 16500 did the oversold conditions come into play, yesterday. We have until 17220 before such oversold indicators straighten out, but 16840 would be a significant challenge that Nifty needs to close above, before we may be convinced of momentum siding with bulls for the next few days.
~ Geojit Financial Services
Bank Nifty index was nearing 35000 mark during the early hours of trade on Tuesday. The banking index was up nearly 1.5%.
Nifty reaches 16800 on Tuesday morning, a crucial zone for the index. According to chartists, Nifty resistance is placed between 16800-16850 zone.
Domestic markets opened in the green on Tuesday morning as benchmark indices looked to recoup losses suffered yesterday. Bank Nifty was up almost 1% while India VIX was down 4%.
“On technical front, the key support and resistance levels for Nifty50 are 16,350 and 16,900 respectively. For Bank Nifty 33,800 and 35,000 may act as nearest support and resistance,” said Mohit Nigam, Head – PMS, Hem Securities.
Sensex rises 400 points in pre-open session on Tuesday while Nifty 50 was nearing 16650 mark.
Technically, a reiteration of negative bias below 17400 has benefited as Nifty intraday low was 16410 on Monday. The underlying trend remains down as the index formed lower lows along with fall in index PCR OI, indicating trader sentiment is bearish and fresh call writing was seen at strike price 17000 with 9 lakh shares (total 19 lakh shares in last two trading days), Combined with a fall in the option price and IV, it indicates that call writing has happened at these strikes implying immediate resistance at these levels for the near term. Further downsides are likely once the immediate support of 16500 is taken out. only formation of higher high-low would be required to conclude corrective bias.
~ Raushan Kumar, Derivative Analyst, IIFL Securities
“16800-16850 should now act as a strong resistance for Nifty and any rise can be a good shorting opportunity 16950 as stop-loss. Nifty 200 EMA is placed at 16290 which should act as decent support,” said Rahul Sharma, Director & Head – Research, JM Financial.
Bears remain in control on Dalal Street and analysts believe any pullback will be used to short the market. Broader markets have tanked strongly in the last few trading sessions while large-caps have offered no respite. “Markets have corrected by ~10% from their peak driven by consistent FIIs selling, tightening monetary policy by central banks globally and concern over economic recovery due to rising omicron cases. The overall market breadth remains negative and would require strong positive triggers for changing the current negative trend,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal. He added that it is time to maintain a cautious view over the next few days.
We almost hit the target of 16400 (yesterday) and the Nifty witnessed a bounce. The trend however continues to remain bearish and we could use higher levels to go short for the next target of 16150-16200. The upside for the index is currently capped and the trend is clearly down!
~ Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Foreign Institutional Investors (FII) were net sellers of domestic stock once again on Monday. FIIs sold Rs 3,565 crore worth stocks. Domestic Institutional Investors (DII), on the other hand were net buyers, pumping in Rs 2,764 crore.
“The market has been in a violent decline for short term and the overall chart pattern indicate more weakness ahead for the near term. Having moved down swiftly in the last few sessions, there is a possibility of a pullback rally from the lower levels and that could be a sell on rise opportunity. The next downside levels to be watched around 16200 (10 month EMA), which could be achieved in the next 1-2 weeks,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Markets have corrected by ~10% from their peak driven by consistent FIIs selling, tightening monetary policy by central banks globally and concern over economic recovery due to rising omicron cases. The overall market breadth remains negative and would require strong positive triggers for changing the current negative trend. Selling pressure is intact at higher levels and any recovery or bounce is being used by traders to go short on the market. Thus, we maintain our cautious view in the market for next couple of days.
~ Siddhartha Khemka, Head – Retail Research, Motilal Oswal
Banks have recovered as much as Rs 13,109 crore from the sale of assets belonging to fugitive economic offenders Vijay Mallya, Nirav Modi and Mehul Choksi, finance minister Nirmala Sitharaman told Parliament on Monday. Replying to a discussion on the second batch of supplementary demands for grants, which was approved by the Lok Sabha amid protests by the Opposition, Sitharaman said the latest recovery from such sales was to the tune of Rs 792 crore on July 16, 2021, as she highlighted the government’s resolve to ensure the fugitives were made to pay for their illegal activities.
SGX Nifty was up in the green on Tuesday morning. Nifty futures were trading 158 points higher during the early hours of Tuesday, hinting at positive start to the day's trade.
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