Domestic equity markets enter the final trading session of the week on the back of four consecutive days of gains. S&P BSE Sensex now sits at 49,765 while the 50-stock NSE Nifty is at 14,894. On Friday morning, SGX Nifty was sitting in the positive territory, hinting at a gap-up start to the day’s trading session. Global cues were, however, mixed on Friday morning. Investors continue to focus on Q4 earnings on Dalal Street. Volatility has remained firmly above 23 levels for the last few sessions.
Global watch: Equity indices on Wall Street ended with gains on Thursday, with Dow Jones during 0.71% higher, followed by a 0.58% jump by S&P 500 and NASDAQ’s 0.33% leap. However, the momentum did not carry through to Asian markets. Shanghai Composite, Hang Seng, Nikkei 225, KOSPI, and KOSDAQ were all trading with losses. Topix was flat with a positive bias.
Technical take: The Nifty formed a small body of negative candle with upper and lower shadow, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a formation of high wave-type candle pattern and this signals volatility in the market and confused state of mind among participants near the resistance,” he added. Profit booking from the highs can be expected.
Levels to watch out for: The sharp up-move seen by Sensex and Nifty yesterday could limit any downside in the near future for the indices. The bottom has not shifted to 14,100 for Nifty and 47,200 for Sensex, said Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities. “On an immediate basis, 14800 and 14700 should be the biggest supports for the market and any correction from current levels to 14800/14700 (49500/49200) would be an opportunity to buy select stocks or indices,” he added. Resistance is placed at 14,950 and 50,000.
FII and DII trades: Foreign Institutional Investors (FII) continued to remain net buyers of domestic stocks for the second day running on Thursday. FII pumped in Rs 809 crore, while Domestic Institutional Investors (DII) pulled out Rs 942 crore.
Results today: Reliance Industries, Yes Bank, IndusInd Bank, Marico, Indian Hotels, Ajanta Pharma, Trent, Can Finance Homes, Astec Lifesciences, Atul, Shriram City Union Finance, and RPG Life Sciences are some of the companies that will announce their quarterly results today.