FIIs were net buyers of equity during all three trading days this week. Their net buying was worth Rs 7.3 Billion, as per provisional figures.
DIIs were net sellers of equity on Mon. Mar 19, but net buyers on Tue. & Wed. (Mar 20 & 21). Their total net buying was worth Rs 7.4 Billion.
The effect of several recent IPOs opening one after another is beginning to take its toll on liquidity. The HAL IPO scraped through because LIC picked up almost 70% of the stake on offer.
The following was the concluding remark in last week's update on the daily bar chart pattern of Nifty: "The index may revisit and possibly breach last week's low of 10142."
Thanks partly to selling by DIIs on Mon. Mar 19, the index dropped to touch an intra-day low of 10075 and closed just below its 200 day EMA.
On Tue. Mar 20, Nifty formed a 'reversal day' bar by opening the day's trading below the channel but closing just above the 200 day EMA. The index rose further today on the back of combined FII and DII buying.
Nifty has been correcting within a downward-sloping channel ever since it formed a 33 points downward 'gap' on Feb 5 '18. Note that in spite of closing below its 200 day EMA, the index received good support from the lower edge of the channel.
Unlike a support (or resistance) level, which gets weakened by each subsequent test, a trend line gets strengthened by subsequent tests. That means, the down trend within the channel is not over yet.
Daily technical indicators are in bearish zones. All three showed positive divergences by not falling lower with the index. That may have triggered the technical bounce from the lower edge of the channel.
Nifty's TTM P/E has moved down to 24.76 - which is still much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is falling sharply in neutral zone and can limit index upside.
Nifty may try to move up further, but is expected to face resistances from the falling 20 day and 50 day EMAs. A 'sell on rise' strategy within the channel should continue to work well for short-term traders.
Long-term investors need not be in a hurry to buy as better entry points may be available soon enough. However, gradual accumulation in good large-cap shares may not be a bad idea. (Have a look at ITC - now trading at a level seen a year back.)
DIIs were net sellers of equity on Mon. Mar 19, but net buyers on Tue. & Wed. (Mar 20 & 21). Their total net buying was worth Rs 7.4 Billion.
The effect of several recent IPOs opening one after another is beginning to take its toll on liquidity. The HAL IPO scraped through because LIC picked up almost 70% of the stake on offer.
The following was the concluding remark in last week's update on the daily bar chart pattern of Nifty: "The index may revisit and possibly breach last week's low of 10142."
Thanks partly to selling by DIIs on Mon. Mar 19, the index dropped to touch an intra-day low of 10075 and closed just below its 200 day EMA.
On Tue. Mar 20, Nifty formed a 'reversal day' bar by opening the day's trading below the channel but closing just above the 200 day EMA. The index rose further today on the back of combined FII and DII buying.
Nifty has been correcting within a downward-sloping channel ever since it formed a 33 points downward 'gap' on Feb 5 '18. Note that in spite of closing below its 200 day EMA, the index received good support from the lower edge of the channel.
Unlike a support (or resistance) level, which gets weakened by each subsequent test, a trend line gets strengthened by subsequent tests. That means, the down trend within the channel is not over yet.
Daily technical indicators are in bearish zones. All three showed positive divergences by not falling lower with the index. That may have triggered the technical bounce from the lower edge of the channel.
Nifty's TTM P/E has moved down to 24.76 - which is still much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is falling sharply in neutral zone and can limit index upside.
Nifty may try to move up further, but is expected to face resistances from the falling 20 day and 50 day EMAs. A 'sell on rise' strategy within the channel should continue to work well for short-term traders.
Long-term investors need not be in a hurry to buy as better entry points may be available soon enough. However, gradual accumulation in good large-cap shares may not be a bad idea. (Have a look at ITC - now trading at a level seen a year back.)
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