Wednesday trade: FIIs flare bear market, sells ₹580 cr in Indian stocks; DIIs turn net buyers

As per NSE data, cumulatively, FIIs buying stood at ₹6,195.54 crore on Wednesday but selling was to the tune of ₹6,775.36 crore. Taking this into consideration, the selloff was around ₹579.82 crore in Indian equities on the day.

Meanwhile, DIIs made a buying of ₹5,711.53 crore and a selling of ₹5,339.97 crore — registering an inflow of ₹371.56 crore on Wednesday in domestic equities.

On the previous day, FIIs were net buyers with an inflow of ₹525.80 crore in Indian stocks. While DIIs were net sellers on Tuesday with an outflow of ₹235.23 crore.

On Wednesday, markets plunged for the fourth day in a row, seeing their biggest losing streak in five months. Sensex has erased its psychological level of 60,000 mark and the Nifty 50 was toppled below 17,600. That being said, Sensex and Nifty 50 closed on their lowest reading since October 19 last year.

Sensex shed 927.74 points or 1.53% to end at 59,744.98. While Nifty 50 dipped by 272.40 points or 1.53% to close at 17,554.30.

Om Mehra, Equity Research Analyst at Choice Broking said, “following Negative global markets, Indian equities opened lower on the day before monthly expiry and were under pressure for the whole day. Traders seem to be cautious ahead of the FOMC minutes due tonight as well as the RBI monetary policy meeting minutes, also due later today.”

According to Stock Edge data which tracks the daily performance of FII and DII on the Indian market, showed that FIIs are broadly net sellers in the current month with inflows coming at ₹1,621.33 crore in Indian equities.

However, the buying from DIIs has offset the selloffs from FIIs so far in February. DIIs inflow stood around ₹9,410.71 crore so far in the current month.

Going ahead, Mehra added, “Volume profile indicates Index has a strong support around 17350-17400 zone. Coming to the OI Data, on the call side, the highest OI observed at 17700 followed by 17800 strike prices while on the put side, the highest OI was at 17500 strike price. On the other hand, Bank nifty has support at 30500-30700 while resistance is placed at 40600-40700 range.”

Further, Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said, “the daily momentum indicator has triggered a negative crossover from the equilibrium line which is a sell signal. Thus, both price and momentum indicator is suggesting a further decline in the coming trading session. On the way down we expect Nifty to retest the recent swing low of 17350 which coincides with the 200-day simple moving average and the recent swing low it touched on the day of Budget. On the upside, the hourly moving averages and the gap area formed today in the range 17775 – 17820 shall act as a stiff resistance.”

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