Bulls back on Dalal Street or will bears fight back today- 5 things to know before opening bell

Bulls back on Dalal Street or will bears fight back today? 5 things to know before opening bell

Domestic markets marked the return of bulls on Monday as Sensex and Nifty zoomed nearly 2% higher each. S&P BSE Sensex rose 1.9% or 1,041 points to end the day at 55,925 while the NSE Nifty 50 index jumped 308.95 points or 1.89% to settle at 16,661. India VIX, the volatility index, has slipped below 20 levels, tanking almost 7% on Monday. Entering Tuesday’s trade, SGX Nifty was down with marginal losses, suggesting a weak opening for indices. Global cues were negative with most Asian stock markets down with losses.

Global watch: US Stock Markets were shut on Monday owing to memorial day. Asian markets were largely down in red during the early hours of trade on Tuesday. Shanghai Composite, Hang Seng, Nikkei 225, and TOPIX were trading with losses. KOSPI and KOSDAQ were up with gains. 

Levels to watch out for: Support for the Nifty 50 index is now in the 16500-16370 range, said Ruchit Jain, Lead Research, 5paisa.com. “On the flipside, the 200 DEMA at 16750, the previous support zone of 16825-16900 are the immediate levels to watch,’” he added. Meanwhile, Nagaraj Shetti said that chart formations point towards a probable bottom reversal for the Nifty at the swing low of 15735-12th May. “As per this pattern, any downward corrections from here is going to be short-lived and could be a buy on dips opportunity for the near term. The next upside levels to be watched at 16900-17000 levels,” he added.

FII and DII trades: After weeks of continuous selling, Foreign Institutional Investors (FII) were seen buying domestic stocks. FII pumped in Rs 502 crore into Dalal Street on Monday. Domestic Institutional Investors (DII) were net buyers as well, putting in Rs 1,524 crore.

Call and Put OI: For the June series, Call Open Interest (OI) is the highest at 17000 strike with 20.9 lakh contracts, followed by 17500 strike. Put OI is the most at 16000 strike and at 15500 strike.