Weak global cues determined the sentiment in Indian equities on Monday. Investors are cautious about inflation and further rate hike cycle on which they expect some clarity from the US Fed minutes later this week. Foreign institutional investors (FIIs) emerged as net sellers in the domestic market for the second consecutive day. On the other hand, domestic investors limited losses by turning net buyers.
As per NSE data, FII shopped for 4,256.62 crore in Indian stocks on Monday, while they cumulatively sold 4,415.57 crore leading to a total outflow of — 158.95 cr.
This will be the second consecutive day of selling by FIIs. FII sold on Friday last week 624.61 cr. FIIs stopped their buying for 5 consecutive days on 17th February.
FII bought between 10 and 16 February 6,088.48 crores.
Talking about DII, these investors bought more on Monday 4,980.30 crore as against sales of Rs. 4,894.07 crore — recording an inflow of in 86.23 crores Indian equity,
In the previous session, DIIs were net sellers 85.29 crores.
Last week, overall, FIIs were net buyers 4,005.85 crore, while DII also infused a similar sentiment 2,820.39 crores.
On Monday, the Sensex closed at 60,691.54, down 311.03 points or 0.51%. The Nifty 50 closed at 17,844.60, down 99.60 points or 0.56%. Banking and financial stocks dragged the overall performance, while IT stocks outperformed.
According to Vinod Nair, head of research at Geojit Financial Services, stocks are rallying ahead of the Fed minutes on Wednesday. The Fed is expected to remain dovish, while keeping its guard up against inflation. As expected, it is unlikely to have a serious impact on the global stock market.
However, Nair also said, “Persistent high interest rates are resulting in bearish demand and earnings outlook, hence the near-term trend will remain cautious.”
For Tuesday’s trade, Rohan Shah, Technical Analyst at Stoxbox said, “Intraday traders can look for long opportunities on Tuesday only above 17,890 level and price remained above 17,890 for 15 minutes to confirm long positions.” Should hold. Traders can only look to short. Nifty breaks 17,800 and remains above for 15 minutes to confirm lower.”
On Nifty 50, Rupak Dey, Senior Technical Analyst, LKP Securities said, bears remain on top as Nifty is slipping in the falling channel. The trend is likely to remain bearish as long as the index remains below 18000; Any increase is likely to be sold. Immediate support is visible at 17750; Below which Nifty can go down till 17600. Again, a fall below 17600 could take Nifty towards 17400. On the higher end, a decisive breakout above 18050 could spur a rally towards higher levels.
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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