Foreign institutional investors’ (FIIs) buying slows on Thursday after RBI maintained a status quo for the second time in a row which was in-line with expectations. However, domestic institutional investors (DIIs) turned net sellers in Indian equities. Both Sensex and Nifty 50 ended in the red dragged by auto, banking, IT, and healthcare stocks.
As per NSE data, FIIs buying value was at ₹8,013.28 crore and selling value at ₹7,800.88 crore. Thereby, they held the title as net buyers with an inflow of ₹212.40 crore.
On the other hand, DIIs bought ₹5,461.85 crore and offloaded ₹5,866.86 crore worth of equities — resulting in an outflow of ₹405.01 crore.
Both FIIs and DIIs were net buyers in the previous session with an inflow of ₹1,382.57 crore and ₹392.30 crore in Indian stocks respectively.
This week so far, FIIs have stayed as net buyers for the third consecutive day, however, DIIs have shown a mixed trend.
On June 8, Sensex ended at 62,848.64 down by 294.32 points or 0.47%. While Nifty 50 closed at 18,634.55, lower by 91.85 points or 0.49%.
Talking about the latest market performance, Ajit Mishra, SVP – of Technical Research, at Religare Broking said, “Markets traded volatile on the weekly expiry day and shed nearly half a percent. The beginning was upbeat but profit-taking in heavyweights across sectors pared all the gains and pushed the index into the red. Consequently, Nifty settled at 18,634.55 levels; down by 0.49%. Most sectors traded in sync and ended lower wherein realty, IT, and FMCG were the top losers. The broader indices too witnessed profit-taking and lost in the range of 0.5%-0.9%.
In the month of May, FIIs made their biggest monthly buying of 2023 as of now, to ₹27,856.48 crore. However, DIIs were net sellers with an outflow of ₹3,306.35 crore, as per Stock Edge data.
Going ahead, Mishra said, “Markets have been gradually inching higher but mixed global cues combined with continued underperformance from the banking pack capping the momentum. Amid all, we suggest keeping a positive tone while maintaining focus on trade management.”
Also, Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, “Nifty has formed a dark cloud cover candle on the daily chart with a lower close, which is considered to be a bearish reversal signal. The Relative Strength Index (RSI), a momentum indicator, continued moving in a lower high formation, keeping the market participants on tenterhooks.”
Ramani added, “The maximum call and put open interest for Nifty is placed at 18,700 Strike for the 15th June expiry. The option activity at 18,700 Strike needs to be monitored for any cues about the Nifty Intraday direction. The downside support for Nifty is placed at 18,600.”