As the market declined for 5 consecutive sessions on Thursday, foreign institutional investors (FIIs) also reduced their selling tone in Indian equities. FIIs sold the least in a day in six trading sessions. Meanwhile, domestic institutional investors (DIIs) continued to pump capital into the market for the sixth day in a row. Domestic equities clawed back some of the previous losses amid mixed global cues as investors reacted to Credit Suisse’s decisive action to pre-emptively strengthen its liquidity.
According to NSE data, FII’s buying value 7,993.16 crore and is selling at 8,275.22 crore – resulting in a total outflow of Rs. 282.06 crore from Indian shares on Thursday. FIIs are net sellers since March 9 amid fears of a contagion in the banking and financial sector in western economies.
Meanwhile DII made purchases 9,226.46 crores and sold 7,175.01 crore in equity — registering a huge inflow 2,051.45 crores. They continue to book losses from FII selling in India market,
On Thursday, the Sensex closed at 57,634.84, up 78.94 points or 0.14%. While the Nifty 50 closed at 16,985.60 with a gain of 13.45 points or 0.08%.
Vinod Nair, Head of Research, Geojit Financial Services, said, “With the turmoil at Credit Suisse and ahead of the ECB policy announcement, investors’ attention has shifted to developments in the European market. Continued adverse cues in global markets are encouraging investors.” turn to safe havens such as dollar and gold, while FIIs withdraw funds from the domestic market in response to the depreciation of the Indian rupee. Although the SVB and Credit Suisse crisis has subsided, markets are positioning on contagion fears It lacks the confidence to keep up.”
The rupee weakened for the fourth consecutive day against the US dollar amid foreign fund outflows and a mixed trend at counterparts. The local unit closed at 82.77 against the dollar against the previous day’s 82.65.
Besides, markets reversed the downward trend to end with modest gains as a major rebound in the stock of crisis-hit financial company Credit Suisse, Switzerland said Shrikant Chauhan, head of equity research (retail), Kotak Securities. After the government provided some hope to the traders. stepped in to support the financial giant. Indian markets outperformed their Asian peers following buying in financials, oil and gas, power and realty stocks.
on Thursday, credit Suisse said it would borrow up to CHF 50 billion from the Swiss National Bank (SNB) under a covered loan facility as well as a short-term liquidity facility. This prompted the Swiss lender’s stock to rally more than 32% on the day. Also, there were some gains in European and Wall Street.
With regard to the banking crisis, Mitul Shah – Head of Research at Reliance Securities pointed out that globally, the crisis in the US banking system has put markets in jeopardy as the banking sector has come under pressure due to fears of contagion. . Markets are worried over the health of the financial system as ratings agency Moody’s downgraded its outlook on the US banking system from stable to negative. The collapse of the Silicon Valley bank following losses in its bond portfolio is the biggest bank failure since the global financial crisis and has shocked the banking sector.
For Friday, Rohan Shah, Principal Technical Analyst, Stoxbox said, “Nifty took support near 16,855. Intraday traders can only look for long opportunities above the resistance level of 17,130 if it sustains for 15 minutes. Traders can only Can look for fresh shorts if Nifty breaks 16,800 level and stays below for 15 minutes to ensure short.”
Moreover, Rohan Patil, Technical Analyst, SAMCO Securities said, “The overall trend still remains on a sideways bias. Support for Nifty is placed around 17,400 – 17,350 levels and resistance is placed near 17,800 levels. In Nifty’s case, a breach below 17,350 versus 17,200 will be the next support area. A strong break above 17,800 will indicate a breakout in the index.”
On technical terms, Chouhan said, “The market has formed a reversal after touching key supports near 16900/57450 and 16800/57150 levels. 17100/58000 will be a major hurdle for the market on Friday, and its There will be a decisive breach. Will help market move up. Towards 17250-17275/58400-58500 levels. Support lies at 16900/57450 and 16850/57150. Nifty/Sensex 16750/56850 or 16600 if 16850/57150 breaks /56400 levels. For Bank Nifty, the important resistance level lies at 39500, above which it will bounce towards 40000 and 40200 levels.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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