Domestic equity markets soared higher on Wednesday as both the headline indices touched new all-time highs. S&P BSE Sensex zoomed 0.75% to end the day at 60,737 while the NSE Nifty 50 index closed 0.94% higher at 18,161. Broader markets, except select, smallcap indices closed with gains. Entering the day weekly Futures and Options trading session, SGX Nifty was up in the green, zooming 80 points, hinting at a gap-up start to the day’s trade. Global cues were largely positive after Wall Street equity indices closed with gains and Asian stock markets were seen mirroring the up-move during the early hours of trade.
Global watch: On Wall Street NASDAQ soared 0.73% while S&P 500 was up 0.30%. Dow Jones was little changed on Wednesday. Among Asian markets, Shanghai Composite was down with marginal losses, while Nikkei 225, TOPIX, KOSPI, and KOSDAQ zoomed ahead.
Technical take: On the charts, Nifty formed a reasonable positive candle with a gap-up opening. “Technically, this pattern indicates an upside breakout of the crucial overhead resistance at 18K mark. This is a positive indication and one may expect follow-through buying in the coming sessions,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities while adding that the short-term trend for Nifty is positive.
Levels to watch out: Nifty has managed to gain nearly 1.5% so far this week. “We are of the view that the short-term chart formation is still on the long side but due to an overstretched intraday rally the bulls may take a caution stance between 18250-18275 levels,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. “For day traders, 18100 would act as a key support level on the Nifty. Above the same, the uptrend wave will continue up to 18200-18275 levels. On the other hand, dismissal of 18100 could possibly trigger a correction wave up to 18040-17980 levels on the Nifty,” he added.
FII and DII trades: On Wednesday, Foreign Institutional Investors (FII) turned net buyers of domestic equities. FIIs pumped Rs 937 crore into domestic equities. Domestic Institutional Investors (DII) were net sellers, pulling out Rs 431 crore.
Results today: HCL Technologies, Mahindra CIE Automotive, Century Textiles, Den Networks, Indiabulls Real Estate, Inox Wind, and Cyient Limited are some of the companies that are scheduled to announce their quarterly results today.