SGX Nifty sits in red on Thursday morning; 5 things to know before today’s opening bell

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Stock market todayTatva Chintan Pharma shares will begin trading on the stock exchanges today.
(Image: REUTERS)

Bears continued to assert control on Dalal Street, forcing the benchmark indices to close in the red for the third day straight on Wednesday. S&P BSE Sensex ended Wednesday’s session 135 points or 0.26% lower at 52,443 while the NSE Nifty 50 ended 0.24% in the red at 15,709. Broader markets mirrored the benchmark indices, except Nifty Next 50, which closed in the green. Nifty IT and Nifty Metal were the only gainers among sectoral indices. Entering the monthly expiry session, SGX Nifty was trading flat hinting at a weak to muted start for domestic equities. Global cues were mixed after Wall Street equity indices ended in opposite directions.

IPO watch: Tatva Chintan Pharma shares will begin trading on the stock exchanges today. The IPO was subscribed a massive 180 times last week. Tatva Chintan Pharma was commanding a strong premium ahead of its stock market debut. On the other hand, today is the last day for investors to bid for Glenmark Life Sciences IPO, which has been subscribed 5.9 times so far. The IPO of Rolex Rings will enter the second day of sale, so far the issue has been subscribed 3.84 times.

Global cues: On Wall Street, NASDAQ ended 0.70% higher on Wednesday while Dow Jones and S&P 500 closed with losses. Among Asian peers, Hang Seng was up nearly 2%, followed by Shanghai Composite. Nikkei 225, TOPIX, and KOSDAQ were also in green but KOSPI was down in red.

Technical take: Although Nifty rebounded yesterday from intraday lows, but still failed to close with gains. “A small negative candle was formed on the daily chart with long lower shadow,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “This pattern signal a formation of hammer type candlestick pattern. Normally, a formation of such hammer pattern after a reasonable decline or near the crucial supports could act as an upside reversal on the confirmation. Hence, there is a possibility of an upside bounce in the next 1-2 sessions,” he added.

Levels to watch out: Nifty has been trading in a range for the last few weeks now. “On Thursday, the market could remain in the trading range of 15800 and 15600. As the market has re-entered the trading range, the levels of 15600 would act as a major support and 15800 would be a major obstacle,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.

FII and DII watch: Foreign Institutional Investors (FII) pulled out Rs 2,274 crore from domestic markets on Wednesday. FIIs have been net sellers so far this week. Domestic Institutional Investors (DII), on the other hand, were net buyers, pumping in Rs 921 crore. 

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