Domestic equities open strong, but profit booking limits gains
The domestic equities market opened on a positive note on Tuesday, following positive global cues. However, towards the end of the day, profit booking led to most of the gains being wiped off. According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal, the market is expected to consolidate within a broader range and take cues from the upcoming earning season.
Negative start signaled for Dalal Street
GIFT Nifty on the NSE IX traded lower by 40.5 points, indicating that Dalal Street was likely to have a negative start on Wednesday.
Tech View: Consolidation phase for markets
The markets are currently in a consolidation phase, with the Nifty trading within a narrow range of 21500 to 21800 for the past ten sessions. This consolidation has allowed the Nifty to fill a large gap between its 50-day mean level. The option chain data suggests that 21500 should provide strong support for the Nifty.
US stocks mixed amid rise in Treasury yields
The S&P 500 and Dow closed lower on Tuesday due to a modest rise in Treasury yields. Investors are assessing the timing and size of any Federal Reserve interest rate cuts in 2024 ahead of inflation data this week. The Dow was down 0.42%, while the S&P 500 dipped 0.15% and the Nasdaq rose 0.09%.
Asian stocks opened mixed as US benchmarks struggled, and Bitcoin experienced volatility due to confusion sparked by social media posts. S&P 500 futures were little changed, while Nasdaq 100 futures also remained stable. Hang Seng futures fell 0.4%, Japan’s Topix rose 0.2%, and Australia’s S&P/ASX 200 fell 0.4%.
Stocks in F&O ban today
The following stocks are in the F&O ban today: India Cements, Balrampur Chini Mills, Delta Corp, IEX, Hindustan Copper, SAIL, Nalco, Chambal Fertilisers, Piramal Enterprises, Escorts, GNFC, and Bandhan Bank. These stocks have reached the market-wide position limit of 95% and are under the ban period.
FII/DII action
Foreign portfolio investors were net sellers on Tuesday at Rs 991 crore, while DIIs bought shares worth Rs 104 crore.
Rupee strengthens against US dollar
The rupee closed marginally higher against the US dollar on Tuesday at 83.13. This marked its fifth consecutive session of gains and was influenced by positive domestic equities.
FII data shows increased net long positions
The net long positions of FIIs increased from Rs 58,982 crore on Monday to Rs 73,888 crore on Tuesday.
Hot Take: Consolidation phase continues as profit booking limits gains
The domestic equities market started strong but faced profit booking towards the end of the day. This consolidation phase is expected to continue as the market consolidates within a broader range and takes cues from the upcoming earning season. While there may be some negative sentiment indicated for Dalal Street, the Nifty is likely to find strong support at 21500. The US stocks experienced mixed results, with the S&P 500 and Dow closing lower due to a rise in Treasury yields. Asian shares were also mixed, and Bitcoin faced volatility. Overall, the market remains in a consolidation phase as profit booking limits gains.
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