Foreign institutional investors (FIIs) also remained cautious in Indian equities in the backdrop of a selloff in the market following disappointing fourth quarter results from TCS and Infosys. FII pulled out on Tuesday 810.60 crore from domestic stocks, this is the second consecutive day of selling. However, domestic institutional investors (DIIs) have been at the forefront of limiting these losses due to foreign fund outflows as they remained net buyers.
According to NSE data, FII’s buying value 7,398.08 crores and came down to the selling price 8,208.68 crores. This led to an overall outflow 810.6 crore in Indian market on BSE, NSE and MSEI on Tuesday.
On the other hand, dii bought 6,490.97 crore more were sold in Indian equities 6,089.31 crore — in total 401.66 cr.
By April 18, FII Buying in Indian equity in the current month is approx. 3,615.92 crores.
The market extended its losses on Tuesday despite recovery in healthcare and IT stocks following disappointing fourth quarter results from TCS and Infosys. HCL Tech and Nestle witnessed maximum buying in the Sensex pack ahead of Q4 results, while Reliance Industries, Titan and Bajaj Finance were major losers.
The Sensex closed at 59,727.01, down 183.74 points or 0.31%. The Nifty 50 closed 46.70 points, or 0.26%, down at 17,660.15. This will be the second consecutive decline in the Indian market. Investors are betting cautiously ahead of some major Q4 earnings like HCL Tech, ICICI Bank, RIL, Yes Bank and Tata Communications.
“Markets closed in the negative territory for the better part of the session and ended weak for the second consecutive day led by selective profit-taking in banking, power and FMCG stocks. However, buying in realty and metal stocks limited the losses. Technically, the market saw profit booking at higher levels after gap up opening which was at 17766/60113. We are of the view that 17800/60200 will now act as an important resistance zone for the traders. Above this the market can go up to 17870-18000/58500-58700. On the downside, selling pressure may increase below 17600/59550. Below this, the index may again test 17500-17400/59300-59000 levels. The strategy should be to buy between 17500 and 17450. For this, keep the stop loss at 17400/59000. 42400 and 42500 will be a resistance zone for Bank Nifty and support lies at 41800,” said Shrikant Chauhan, head of equity research (retail), Kotak Securities Ltd.
“Nifty continued to trade mildly negative within the previous candle range and once again closed above its 9 EMA which was placed at 17,618 on Tuesday, April 18. The benchmark index closed at 17,660 with a marginal loss of 0.26%. After showing sharp weakness on Monday, Nifty turned into follow-through weakness with range bound movement. For the last two trading sessions, the 17,600 level is acting as a demand zone where the price showed strength and closed above it,” said Rohan Patil, Technical Analyst, SAMCO Securities.
“On the daily chart the index has recovered its channel pattern breakout level at 17,600 and the index was able to hold it for the second day in a row. The momentum oscillator RSI (14) has also relaxed its breakout level and is firmly held above the 50 level. In the near term, the trend is likely to remain bullish sideways as the bullish breakout of the descending channel pattern remains valid. The bullish pattern has validity above 17,500 level, which can be considered as an immediate support for the index.”
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