Sensex, Nifty could mirror their global peers on Thursday; 6 things to know before today’s opening bell
Domestic stock markets took a break on Wednesday and closed in the red, a day after hitting new all-time highs. At the closing bell, the S&P BSE Sensex was at 52,501 while the 50-stock NSE Nifty was at 15,767. On Thursday, before the weekly expiration session, SGX Nifty was trading nearly 100 points lower, suggesting a weak start for national actions. Global indices were also negative after the Wall Street indices fell after the US Fed signaled it would hike rates in 2023. Asian peers were under pressure during the early hours of trading.
US Fed result: The US Federal Reserve has decided to keep rates unchanged within its Federal Open Market Committee. However, the Fed has said it expects two rate hikes by the end of 2023. Fed Chairman Jerome Powell also said officials will start a discussion on reducing bond purchases.
Global watch: Wall Street did not take the Fed’s decision lightly and closed in the red for the second day in a row. The Dow Jones ended down 0.77%, followed by a 0.54% drop in the S&P 500 and a 0.24% slide in the NASDAQ. Asian peers were largely negative, with the exception of Shanghai Composite and KOSDAQ.
Technical approach: Nifty formed a long negative candle after a doji-like setup at new highs on Tuesday, said Nagaraj Shetti, technical research analyst, HDFC Securities. “This again raises concerns about the sustainability of bulls at new heights. At the same time, the market has not shown a decisive decline beyond the recent one-day weakness, ”he added.
Levels to watch: For Nifty to reach 16,000, the 50-stock index will need to open sharply above 15,830, according to Shrikant Chouhan, executive vice president, technical equity research, Kotak Securities. “In case the market opens lower and breaks the 15580/51850 level, then the odds of reaching 15500/15430 (51600/51400) will become bright. As the major market trend is positive, our advice is to add long positions, if the market falls on major short term supports, ”he said.
FII and DII professions: Foreign Institutional Investors (FIIs) were net sellers of domestic stocks on Wednesday, withdrawing Rs 870 crore. National Institutional Investors (DII) were also net sellers, taking out Rs 874 crore.
IPO watch: The public broadcasts of Shyam Metalics and Sona Comstar closed yesterday. Shyam Metalics has been subscribed 121.43 times by investors. Sona Comstar’s IPO was subscribed 2.28 times, all except the NIIs having oversubscribed their share. The KIMS IPO got off to a good start on day one, with retail investors already oversubscribing their share of the issue and the total subscription to 0.27 times. Meanwhile, Dodla Dairy’s IPO was oversubscribed on day one, with retail investors offering 2.73 times their quota. The overall subscription was 1.40 times at the end of the first day.