Sensex, Nifty to gain or will bears return to Dalal Street? Key things to know before opening bell

Domestic benchmark indices clocked the second day of gains on Monday as equity markets followed their global peers and moved higher. S&P BSE Sensex ended Monday’s trading session 448.62 points or 1.12% higher while the 50-stock Nifty 110 points to close at 11,873 mark. “A small body of negative candle was formed with gap up opening with long lower shadow and the opening upside gap remains unfilled. Technically, this pattern indicates a continuation of upside bounce in the market amidst a range movement,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that unless Nifty crosses 12,025 levels, profit booking can not be ruled out from highs.

In the coming session, equity markets could remain range-bound. SGX Nifty was pointing at a gap-down start. “On Tuesday, the market would trade between 11,900 and 11,800 levels. If the Nifty goes above 11,900, then it may even hit the levels of 11950 or 12050,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. In his view, investors are advised to buy if Nifty crosses  the 11,900 mark. Most analysts see upside resistance at 12,000 levels while Nifty could find support in the 11,600-11,700 range. 

Global cues: US stock markets ended deep in the red on Monday. Dow Jones, S&P 500, and NASDAQ were all at over 1% down. Asian peers on Tuesday morning too were trading with losses. Shanghai Composite and Hang Seng were in the red, followed by Nikkei 225 and TOPIX. KOSDAQ was down over 1%.

FII and DII activity: After two days of selling Foreign Institutional Investors (FII) turned net buyers of domestic equity, buying stocks worth Rs 1,656 crore while they sold stock futures and index options. Domestic Institutional Investors (DII) were net sellers of Rs 1,621 crore worth of stocks.

Bulk deals: On Monday, Hsquare Globetrade LLP sold 5 lakh shares of Jump Networks. Jainam Share Consultants Pvt ltd too sold shares of Jump Network but was also seen buying the same stock in larger quantities.  Alpha Leon Enterprises LLP sold 71,526 equity shares of Xelpmoc Design & Tech ltd.

New IPO on the block: Equitas Small Finance Bank’s Rs 518 crore IPO will open for subscription today at a price band of Rs 32-33 per share. On Monday, Equitas Small Finance Bank shares were trading at a price lower than the issue price in the grey market.

Window for stimulus still open: The Finance Minister on Monday said that the government has not closed the option to come out with another stimulus. Nirmala Sitharaman said that the government has now started doing some kind of an assessment on GDP as the second half of the fiscal year started.