Monday trade: FIIs sell ₹159 crore in Indian stocks; DIIs invest over ₹86 cr
Weak global cues dictated the sentiment in Indian equities on Monday. Investors are cautious about inflation and the rate hike cycle ahead, on which they expect to find some clarity from US Fed’s minutes due later this week. At home, foreign institutional investors (FIIs) emerged as net sellers for the second day in a row. On the other hand, domestic investors limited the losses by turning into net buyers.
As per NSE data, FIIs carried a purchase of ₹4,256.62 crore in Indian stocks on Monday, while they cumulatively sold about ₹4,415.57 crore — leading to an overall outflow of ₹158.95 crore.
This would be the second consecutive day of selling bias from FIIs. Last week, on Friday, FIIs sold ₹624.61 crore. FIIs halted their 5 consecutive days buying spree on February 17th.
Between February 10th to 16th, FIIs bought ₹6,088.48 crore.
Coming to DIIs, on Monday, these investors made more buying of ₹4,980.30 crore, than selling of ₹4,894.07 crore — recording an inflow of ₹86.23 crore in Indian equities.
In the previous session, DIIs were net sellers with an outflow of ₹85.29 crore.
Last week, overall, FIIs were net buyers with an inflow of ₹4,005.85 crore, while DIIs also held a similar sentiment with an inflow of ₹2,820.39 crore.
On Monday, Sensex shed 311.03 points or 0.51% to end at 60,691.54. Nifty 50 tumbled by 99.60 points or 0.56% to close at 17,844.60. Banking and financial stocks dragged the overall performance, while IT stocks outperformed.
According to Vinod Nair, Head of Research at Geojit Financial Services, stocks are getting beaten ahead of the release of Fed minutes on Wednesday. Maintaining its guard against inflation, the Fed is expected to remain hawkish. As expected, it is unlikely to have a dire effect on the global stock market.
However, Nair also added, “the consequence of constant high-interest rates is causing a slowdown in demand & the earnings outlook, hence the near-term trend will be cautious.”
For Tuesday trade, Rohan Shah-head technical analyst at Stoxbox said, “intraday traders can look for long opportunities only above the 17,890 level on Tuesday & the price should sustain above 17,890 for 15 minutes to confirm long. Traders can look for short only if nifty breaks the 17,800 & remains above for 15 min to confirm short.”
On Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities said, the bears remain at the helm as Nifty slips back into the falling channel. The trend is likely to remain weak as long as the index remains below 18000; any rise is likely to get sold into. Immediate support is visible at 17750; below which Nifty may move down to 17600. Again, a fall below 17600 may take the Nifty towards 17400. On the higher end, a decisive breakout above 18050 may induce a rally toward higher levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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