Commenting on the day’s action, Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities said that Nifty surpassed the 25,000 mark giving its highest closing of the last seven months propelled by strong buying interest in metal, auto, IT, and realty stocks. “It is now decisively above the key psychological resistance of 25,000,” he said.
In his view, the short term trend of the Nifty remains positive as it is placed above its important short term moving averages. “Next resistance for the Nifty is seen at 25,207, derived from 76.4% retracement of the entire fall seen from 26,277 to 21,743. On the downside, 24,800 could offer immediate support,” Shah said.Here’s breaking down of the pre-market actions:
STATE OF THE MARKETS
Tech View: The recent surge in the Nifty index has reinforced our positive outlook, Ajit Mishra, Senior Vice President, Research at Religare Broking said. “A decisive breakout above the 25,200 level could potentially take the index towards the 25,400+ zone. We continue to advocate a buy on dips strategy, with a strong emphasis on selective stock picking, especially in light of overbought conditions in certain segments,” Mishra said.
India VIX: India VIX, which is a measure of the fear in the markets, fell 1.93% to settle at 16.89 levels.FII/DII action
Foreign institutional investors (FIIs) were net buyers of Indian equities as they bought shares worth Rs 5,392.94 crore on Thursday while the domestic institutional investors (DIIs) shares worth Rs 1,668.47 crore.
Stocks in Ban
Three stocks are under F&O trade ban viz. CDSL, Hindustan Copper and Manappuram Finance.
Rupee
The Indian rupee fell on Thursday, weighed down by persistent interbank dollar demand, but pared losses after President Donald Trump said that India had offered a zero-tariff trade deal to the United States. The rupee closed at 85.55 against the US dollar, down 0.3% on the day but above its intraday low of 85.7225.
The rupee rose above 85.50 in an immediate reaction to Trump’s comments but thereafter bids from foreign and local banks picked up, a trader at a Mumbai-based bank said. The dollar bids were likely spurred by corporate demand and modest portfolio outflows, the trader said.
The dollar-rupee overnight swap rate also dipped, pointing to heightened demand for cash dollars, which typically indicates a pick up in outflows.
(Inputs from agencies)
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