Bears look poised to regain control of Sensex, Nifty; 5 things to know before opening bell

Bears look poised to regain control of Sensex, Nifty; 5 things to know before opening bell

Domestic markets moved higher on Tuesday, as bulls attempted a comeback, but global cues and SGX Nifty were suggesting another reversal for today. S&P BSE Sensex rose 776 points or 1.37% to settle at 57,356 points while the NSE Nifty 50 index jumped 246 points or 1.46% to regain 17,200. Entering Wednesday’s trade, SGX Nifty was down 200 points, hinting at a gap-down start to the day’s trade. Global cues were weak with Wall Street equity indices having tanked severely on Tuesday. An aggressive Fed tightening and resurging covid is weighing down on investor sentiment.

Global watch: The technology-heavy NASDAQ index plummeted 3.95% on Tuesday, followed by S&P 500 and the Dow Jones. Among Asian peers, Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ were all down with losses. 

Levels to watch out for: Nagaraj Shetti believes the 17300-17400 range could be a tough task for the market to surpass. Meanwhile, Rahul Sharma, Director & Head – Research, JM Financial advised investors to reduce longs or short at 17200. “Support placed at 17000 and 16850,” he added.

FII and DII trades: Foreign Institutional Investors sold stocks worth Rs 1,174 crore on Tuesday. Domestic Institutional Investors bought shares worth Rs 1,634 crore. “FIIs added some long in index Futures and bought Index options aggressively worth Rs 9,957 crore,” said Rahul Sharma.

IPO watch: Campus Activewear IPO was subscribed fully on day one. The issue has been oversubscribed by Non-Institutional Investors as well as Retail investors. Total subscription stands at 1.24 times. Today, the issue of Rainbow Children’s Medicare will open for subscription. The company has raised Rs 470 crore from anchor investors ahead of the IPO.