After an eventful last week, domestic markets might be hoping for some respite in the coming trading sessions. Having tanked 3% in 5 trading sessions, S&P BSE Sensex now sits at 49,099 points while the 50-stock NSE Nifty was at 14,529. SGX Nifty was trading higher on Monday morning, up by 200 points in the early hours of trade. Asian peers too were sitting in green. Technically, there could be further downside in store for markets. “The recent upside bounce of the last two sessions has been negated sharply on Friday and the short term trend has turned down,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global Watch: Shanghai Composite was up 0.25%, along with Hang Seng, up 1%. TOPIX was soaring and Nikkei 225 was up more than 2%. On Wall Street, the tech-heavy NASDAQ closed with gains on Friday, but Dow Jones and S&P 500 ended lower.
What do the charts say: Sensex and Nifty have slipped below the lowest levels of the last two weeks. “The market has established a series of ‘lower top and lower bottom’ that would be negative for the medium-term trend of the market,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. Patterns suggest more selling could be on the cards, according to Sumeet Bagadia, Executive Director, Choice Broking. “Nifty has given a closing below 21 DMA which points out the weakness in it. Momentum Indicator RSI is also given below 50 levels with a negative crossover which is a bearish sign,” he added.
Support and resistance levels: Nagaraj Shetti believes that markets may slide down to the next crucial supports of around 14350-14300 levels in the coming few sessions. Shrikant Chouhan said that the benchmarks find support at 14300/48000 for the coming week. “If the market falls to 14300-14350 / 48200 without meaningful bounce, then it would be a buying opportunity for short term / medium term traders/investors,” he added.
FII and DII trades: Foreign Institutional Investors (FII) pulled away Rs 8,295 crore from domestic markets on Friday as bond yields rose. Domestic Institutional Investors (DII) were net buyers of securities, pumping in Rs 1,499 crore.
The economy looks up: India economy grew 0.4% in the fiscal third quarter, according to the official numbers released last week. With this, the Indian economy reversed the technical recession that it had entered earlier this fiscal year after two consecutive quarters of decline in the GDP.