GIFT Nifty plans at muted start; FIIs come back as all buyers
Dalal Street braced for a muted opening on Wednesday, with the GIFT Nifty trading 18 points higher at 24,237, marking a gain of 0.07 percent. This comes after Indian markets made early gains on Tuesday due to profit booking, following a two-day rally amid weak global cues.
Despite cautious sentiments, foreign institutional investors (FIIs) responded to buyers, injecting Rs 9,947 crore into the markets on Monday. Analysts, however, cautioned that a sustainable change among FIIs is yet to be confirmed.
Market experience and technical vision
Technically, the range-bound price action of the Nifty is showing a pause in its broader uptrend. Support levels at 24,070–24,050 are seen as buying opportunities, with a possible target of 24,770–24,800, said Jatin Gedia of Sharekhan.
Landmarks
Wall Street ended higher overnight, boosted by a rebound in technology stocks and investors’ optimism about monetary policies. The Dow, S&P 500, and Nasdaq gained 0.28 percent, 0.57 percent, and 0.63 percent, respectively. However, Asian markets showed mixed sentiment, with Japan’s Topix down 0.5 percent, while Australia’s S&P/ASX 200 rose 0.6 percent.
Some of the highlights of the market
- India VIX: The volatility index rose slightly to 15.30, indicating investor caution.
- Rupee: The rupee closed flat at 84.29 against the dollar on Tuesday, boosted by FII inflows despite a stronger greenback.
- Function of FII/DII: FIIs responded to buyers worth Rs 1,157 crore on Tuesday, while domestic institutional investors (DIIs) sold shares worth Rs 1,910 crore.
With markets reeling from profit booking and mixed global conditions, the focus is on FII activity and opportunities in the industry. Investors are advised to adopt a stock-specific strategy while keeping a close eye on the key support and resistance levels of the Nifty.
