Foreign institutional investors (FIIs) contributed to the carnage on Wednesday by pulling back from their previous buying session and emerging as net sellers. FII almost pulled out 580 crore from Indian equities during the day. On the other hand, domestic institutional investors (DIIs), who were net sellers yesterday, limited losses by investing more. 371 crores.
According to nse The data, cumulatively, stood on FII buying Rs 6,195.54 crore was sold on Wednesday 6,775.36 crores. With this in mind, the sell-off was approximately 579.82 cr in Indian equities on the day.
Meanwhile, DII purchases 5,711.53 crore and sales of 5,339.97 crore — registering an inflow of 371.56 crore in the domestic stock markets on Wednesday.
On the previous day, FIIs were net buyers 525.80 crores Indian stock, While DIIs were net sellers on Tuesday 235.23 cr.
On Wednesday, the markets fell for the fourth consecutive day, witnessing the biggest decline in five months. Sensex has erased its psychological level of 60,000 mark and Nifty 50 has fallen below 17,600. It is being said that Sensex and Nifty 50 closed at their lowest level since October 19 last year.
The Sensex closed 927.74 points or 1.53% lower at 59,744.98. While the Nifty 50 closed at 17,554.30, down 272.40 points or 1.53%.
Om Mehra, Equity Research Analyst, Choice Broking said, “After negative global markets, Indian equities opened lower a day ahead of monthly end and remained under pressure throughout the day. Traders look cautious ahead of FOMC minutes due tonight As per the minutes of the RBI’s monetary policy meeting, that too is due later today.”
According to Stock Edge data, which tracks the daily performance of FIIs and DIIs in the Indian market, shows that FIIs are largely net sellers in the current month, with inflows coming in. 1,621.33 crore in Indian equities.
However, DII buying has more than offset FII selling in February so far. DII flow stood around 9,410.71 crore in the current month so far.
Going forward, Mehra said, “The volume profile indicates that the index has a strong support around 17350-17400 zone. Coming into the OI data, on Call side, the highest OI was seen at 17700, while on Put side 17800 The strike prices were. The highest OI was at 17500 strike price. On the other hand, Bank Nifty has support at 30500-30700 while resistance is placed at 40600-40700 range.
Furthermore, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said, “The daily momentum indicator has triggered a negative crossover from the equilibrium line which is a sell signal. Thus, both the price and the momentum indicator will move higher in the coming time.” Trading session. On the way out we expect Nifty to retest the recent swing low of 17350 which coincides with the 200-day simple moving average and the recent swing low on Budget day Low touched. On the upside, the hourly moving average and the gapping area formed today in the range of 17775 – 17820 will act as a stiff resistance.”
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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