SGX Nifty falls- Nifty & Bank Nifty technical view, DreamFolks IPO, global markets; key things to know

SGX Nifty falls: Nifty & Bank Nifty technical view, DreamFolks IPO, global markets; key things to know

Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 were likely to open in red on Wednesday, a day before weekly and monthly F&O expiry. SGX Nifty 50 Index Futures for August were trading at 17554, down 54 points or 0.31 per cent. In the previous session, S&P BSE Sensex added 257 points or 0.44% to close at 59,031 while the NSE Nifty 50 index gained 86 points or 0.5% to settle at 17,577. Technical analysts say that the Nifty held above the support of 23.6% fibonacci retracement at 17330 levels (connected from the bottom of June to high of 19th Aug) before showing upside bounce. Normally, the underlying bouncing back from such initial retracement signal strength of its long term trend.

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Nifty on technical charts: The decent pullback rally from the lows of Tuesday could be a cheering factor for bulls to make a come back, said an analyst. “Further follow-through upmove from here and a sustainable move above 17800 levels could open further upside for the short term. Any failure to sustain the highs is likely to bring bears into action again. Immediate support is placed at 17500 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

FII and DII data: On Tuesday, foreign institutional investors (FIIs) bought shares worth Rs 563 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 215.20 crore on a net basis in India equity market.

DreamFolks IPO opens: DreamFolks Rs 562-crore IPO will open for subscription on Wednesday, and close on 26 August. The company has announced the price band at Rs 308-326 per equity share of face value of Rs 2 each. The issue is entirely an offer-for-sale (OFS), offering up to 1.7 crore equity shares by the existing promoters and the selling shareholders.

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Bank Nifty technical view: The Bank Nifty index witnessed a sharp recovery from the lower level and formed a strong bullish reversal candle, said analyst. “The index downside support stands at the 37,700-38,000 zone and as long as this support is held the index remains in a buy on dip mode. The immediate upside hurdle stands at 39000 where call writers are active and once surpassed will see further short covering,” Kunal Shah, Senior Technical Analyst at LKP Securities.