Equity markets seemed to be in a bear grip on Monday but staged a strong recovery from the lows. S&P BSE Sensex closed at 50,397 points while the Nifty 50 ended just below 15,000 levels. “The market has once again recovered strongly. The market is not ready to give up easily. The uptrend from 14745/49800 stopped directly at 14950/50500 and the Bank Nifty improved by 800 points from the bottom,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. On Tuesday morning, SGX Nifty was trading 70 points higher, hinting at a gap-up start.
Global watch: Stock markets in the United States closed with gains on Monday. NASDAQ zoomed 1% while S&P 500 and Down Jones followed. Asian markets were tracking the gains and moving higher. Shanghai Composite, Hang Seng, KOSPI, KOSDAQ, TOPIX, and Nikkei 225 were all moving with gains.
Technical take: Indices moved to recoup some losses during the dying hours of yesterday’s trade hinting at bears might not be fully in control. “Technically, the benchmark index has tested Horizontal Line & 50 days Simple Moving Averages and pulled back from there, which indicates an immediate support zone for the near term. Moreover, on an hourly chart the index has reversed from Lower Bollinger Band formation, which suggests a reversal in the counter,” said Sumeet Bagadia, Executive Director, Choice Broking.
Support and Resistance: On the downside, the 14,800-14,750 range would act as support for Nifty and 49,800-50,000 would be the support for Sensex, according to Shrikant Chouhan. Meanwhile, Rohit Singre, Senior Technical Analyst at LKP Securities said that 14750 will be immediate and strong support for Nifty.
IPO Watch: Anupam Rasayan’s IPO closes today. The issue has been subscribed 3.64 times by investors so far. NIIs and retail investors have oversubscribed. The two other IPOs, Craftsman Automation and Laxmi Organic Industries will today enter the second day of subscription. While the former has been subscribed 0.55 times, the latter was oversubscribed on the first day itself.
FII and DII activity: Foreign Institutional Investors were again net sellers of domestic stock markets, pulling away Rs 1,101 crore on Monday. Domestic Institutional Investors (DII) followed FIIs by selling Rs 749 crore worth of securities.