Domestic markets edged higher in early trade on May 18 amid low-level buying and firm global cues after US President Biden expressed confidence in achieving a debt-ceiling deal.
Foreign investors continue to pour money into Indian equities, keeping the sentiments on the Street high. In May, so far, foreign institutional investors have net purchased over Rs 16,000 crore worth of shares.
At 11 am, the Nifty was traded 0.31 percent, or 57 points, higher at 18,239.
The index, however, is still witnessing heavy shorts at 18,300, which is turning out to be a key hurdle for the index. Traders were also seen taking Straddle positions at 18,250, which is a neutral strategy and pays off when the market does not move much.
“The Nifty may gain strength only above the 18,473 mark, while support is seen at 18,079 level,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
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Sameet Chavan, Head Research, Technical and Derivatives, Angel One, said a crucial support zone lies between 18,000 and 18,100, coinciding with a 50-percent retracement of the recent rally and the 20 EMA. Only if this support is broken, further weakness would creep in, he added.
Among individual stocks, financial stocks such as CanFin Homes, AU Small Finance Bank, and Chola Finance saw traders creating long positions. On the other hand, Godrej Properties continued to see short additions.
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