Stocks

SGX futures point Nifty to breach all-time high above 16,700

K. S. Badri Narayanan | | Updated on: Aug 25, 2021
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Eyes on beaten-down mid and small-cap stocks; F&O expiry to keep markets volatile

Domestic stock markets on Wednesday are likely to open on a bullish note, thanks to positive global cues. However, impending F&O expiry on Thursday on the NSE will keep markets volatile, said analysts.

But the focus will be on mid and small-cap space, as some saw value-buying, analysts further said.

According to them, shares from mid-cap and small-cap have witnessed buying interest after a long gap on Tuesday. The momentum to sustain in the coming days, they added despite the worry of tapering of easy liquidity.

SGX Nifty futures at 16,716

Nifty futures at 16,716 on the Singapore Exchange suggests that the all-time of Nifty (at 16,701.85) is likely to breach on Wednesday. Nifty futures on Tuesday closed at 16,620 (August) and 16,656.80 (September).

Deepak Jasani, Head of Retail Research, HDFC Securities, said: “Advance decline ratio has improved dramatically to the highest since August 12. Nifty is just 76 points away from the all-time high formed on August 18. More than the Nifty, focus will remain for some time on the broader markets, as to how much does the broader market recover when the Nifty is near all-time highs.”

The US stocks continued their momentum on Tuesday, with indices ruling near an all-time high. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite closed in green, though they surrendered most of the early gains. However, markets across Asia-Pacific are ruling flat in an early deal on Wednesday.

Shirkant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said: “ The texture of the pullback rally (on Tuesday) indicates the index is likely to consolidate between 16500 to 16720 levels. In addition, on the intraday chart, the index has formed a higher bottom formation which suggests further uptrend from the current levels. As long as the index is trading above the 10 days SMA or 16,500 level, the uptrend wave is likely to continue up to 16,700-16,750 levels. On the flip side, the index would be vulnerable below 16,500”.

Published on August 25, 2021

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