The market is seen heading southward in early trades much in tandem with the rout in other global indices amid concerns about global economic growth stemming from China. /Representative image | AFP PHOTO / FRED DUFOUR
Trends in SGX Nifty indicate a gap-down opening for Indian indices. Indian markets could open lower in line with negative Asian markets today and sharply lower US markets on Tuesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Nifty broke a two day losing streak on April 26 becoming the best performing index in the Asian region. At close Nifty was up 1.46 percent or 246.9 points at 17,200.
Nifty rose with an upgap on April 26 and in the process made a bullish island reversal pattern. It is important for the Nifty not to go below 17,054 so that the bullishness of the pattern is not negated. Low volumes accompanied by positive advance decline ratio means that FPIs were not aggressive on the sell side but at the same time local traders chose to focus more on the large and midcaps. 17,009-17,315 could be the band for the Nifty in the near-term, Jasani added.
The market is seen heading southward in early trades much in tandem with the rout in other global indices amid concerns about global economic growth stemming from China, said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.. As on date, the world economy once again finds itself in a problematic position due to growth concerns amidst renewed COVID surge in China and Russia’s Ukrainian invasion. "Our call of the day suggests Nifty may trade volatile with interweek support seen only at 16597 mark. Intraday support for the index is seen at the psychological 17000 mark. To regain momentum on the buy side, Nifty needs to stay above its 200-DMA at 17207 mark," Tapse added.
Mohit Nigam, Head - PMS, Hem Securities said, markets are likely to get gap-down opening as an uptick in oil prices and the Russia-Ukraine conflict continued to weigh on market sentiment. Traders may take note of Acting Director of the IMF's Asia and Pacific Department stating that the surge in oil prices due to the Ukrainian war has pushed up inflation in India, which needs monetary tightening and measures to address structural weaknesses to improve growth potential.
There will be some reaction in edible oil industry stocks with private report that India's palm oil imports in May are set to rise above 600,000 tonnes despite the restriction imposed by Indonesia.
Back home, Bulls made come back after two days of continuo...