Market is likely to open in the green as trading resumes after a holiday on Wednesday.
SGX Nifty at around 17,000 (7 am) — up over 80 points — indicates a start in the green for the Indian equity market.
On the global front, Wall Street edged higher ahead of Fed outcome later this week. In the morning, Asian markets were also largely in the green.
Ajit Mishra, VP - Research, Religare Broking Ltd, said, “Apart from global cues, domestic factors like earnings, LIC IPO and auto sales numbers will also be in focus. “
The mega LIC IPO will open for subscriptions today.
The market is likely to remain volatile ahead of the outcome of the US Fed meeting.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, “Investors are keenly awaiting the outcome of the US Fed’s monetary policy announcement scheduled later this week. The Nifty is holding above the level of 16800, but it is failing to show sustained momentum.”
“In short, the market is consolidating within a broad trading range of 17400 and 16800. We may not see any trending move in the market unless it crosses the 17400 level or breaks the 16800 level. A close below the same will be negative for the market. Also, the volatility index is well above the 20 level, which indicates the market is about to break the trading range in the near future,” added Chouhan.
As per Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, “Technically, the line in the sand is at Nifty’s support at 16807 mark and below the same, the index could swiftly move to 16597 with aggressive inter-month targets at 14251-14500 zone. The index is likely to find strength only above 17607 mark on closing basis. To affirm bullishness, Nifty needs to close above its 200 DMA at 17233 mark.”
FII remain sellers
Foreign institutional investors (FIIs) continued to remain sellers, having net sold shares worth ₹1,853.46 crore on Monday, May 2, while domestic institutional investors (DIIs) managed to offset FII outflows, net buying shares worth ₹1,951.10 crore, as per provisional data on the NSE.