Tuesday trade: FIIs pull out ₹811 crore from equities, DIIs invests ₹402 crore
On the backdrop of selling in market after disappointing Q4 numbers for TCS and Infosys, foreign institutional investors (FIIs) maintained a cautious tone in Indian equities as well. On Tuesday, FIIs pulled out ₹810.60 crore from domestic stocks, making it their second consecutive day selloff. However, domestic institutional investors (DIIs) have been at the forefront to cap these losses arising from foreign funds outflow, as they continue to be net buyers.
As per NSE data, FIIs buying value stood at ₹7,398.08 crore and the selling value came in at ₹8,208.68 crore. This led to an overall outflow of ₹810.6 crore in the Indian market on Tuesday on BSE, NSE, and MSEI.
On the other hand, DIIs bought ₹6,490.97 crore in Indian equities and sold ₹6,089.31 crore — pumping an overall ₹401.66 crore.
As of April 18, FIIs buying in Indian equities in the current month is approximately ₹3,615.92 crore.
Markets extended their losses on Tuesday despite a recovery in healthcare and IT stocks after disappointing Q4 numbers for TCS and Infosys. HCL Tech and Nestle witnessed the most buying on Sensex ahead of Q4 results, on the other hand, heavyweights Reliance Industries, Titan, and Bajaj Finance were major draggers.
Sensex dipped by 183.74 points or 0.31% to end at 59,727.01. Nifty 50 shed 46.70 points or 0.26% to close at 17,660.15. This would be the second consecutive decline in the Indian market. Investors are betting cautiously ahead of some of the major Q4 earnings such as HCL Tech, ICICI Bank, RIL, Yes Bank, and Tata Communications among others.
“Markets languished in negative territory for the better part of the trading session and ended weak for the second day in a row as selective profit-taking in banking, power & FMCG stocks weighed. However, buying in realty and metal stocks limited the downside. Technically, after the gap-up opening, the market saw profit booking at higher levels which were at 17766/60113. We are of the view that 17800/60200 will now act as an important resistance area for the traders. Above that, 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 test 17500-17400/59300-59000 levels again. The strategy should be to buy between 17500 and 17450. For this, keep a stop loss at 17400/59000. For the bank nifty 42400 and 42500 would be a resistance zone and support exists at 41800,” said Shrikant Chouhan, 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 is placed at 17,618 levels on Tuesday April 18. The benchmark index closed at 17,660 levels with a marginal loss of 0.26%. After showing sharp weakness on Monday, Nifty shifted to a follow-through weakness with range bound movement. From the past two trading sessions, the 17,600 level is acting as a demand zone where prices are showing strength and witnessed closing above the same,” said Rohan Patil, Technical Analyst, SAMCO Securities.
“The index on the daily chart has retested its channel pattern breakout levels at 17,600 and the index succeeded in holding that for the second consecutive day. The momentum oscillator RSI (14) has also rested its breakout levels and firmly held above 50 levels. Over the near term, the trend is likely to remain in a bullish to sideways tone as the bullish breakout of a falling channel pattern is still valid. The validity of the bullish pattern stands above 17,500 levels which can be considered an immediate support for the index,” he added.
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