Trends in SGX Nifty indicate a negative opening for Indian indices

1 month ago 31

Stocks in Asia were steady Wednesday, while bond yields extended their advance amid a debate about how aggressive monetary tightening will need to be to fight inflation /Representative image | Photo Credit: AFP

The trends in SGX Nifty indicate a negative opening for Indian indices. Deepak Jasani, Head-Retail, HDFC said, the Indian markets could open flat to mildly lower in line with rangebound Asian markets today and lower US markets on Tuesday.

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, Going by the early action at SGX Nifty, key local benchmark indices are likely to wobble in today's early trade, as there are lingering worries over the implications of soaring inflation and tighter monetary policy on the growth momentum. The street suspects that the Fed and also the RBI will move aggressively to raise rates and that could cause a recession. India VIX, which measures the expected volatility in the market, has moved to 20.47 levels, indicating intra-day volatility.

Nifty lost the afternoon gains on May 31 amid large volume trade on NSE due to MSCI rebalancing trades. 16,677-16,690 band on the Nifty is proving to be a tough resistance for the Nifty. A downward breach of 16,506 could result in a sharper correction on the downside, said Jasani.

Mohit Nigam, Head - PMS, Hem Securities said, Benchmark indices are expected to open on a flat to slightly negative note today as suggested by early trends on SGX nifty. On Tuesday Indian indices broke its three days green streak and ended the day in negative terrain. European markets were worst affected yesterday after the economic data showed record high levels of inflation in May, making interest rate hikes by the ECB all the more important. India’s GDP data beat estimates as the economy grew at 4.1 percent in the fourth quarter compared to 5.4 percent last year. Overall economy expanded 8.7 percent in FY22.

On the technical front, the key resistance level for Nifty50 is 16,700 followed by 16750 and on the downside 16,500 and 16,400 will act as strong support. They key resistance level for bank nifty is 35,800 followed by 36,150 and on the downside 35,200 and 34,950 will act as strong support, Nigam added.

The BSE Sensex plunged 359.33 points or 0.64 percent at 55,566.41. The broader Nifty50 fell 76.90 or 0.46 percent at 16,584.50.

Asian stocks steady

Stocks in Asia were steady Wednesday, while bond yields extended their advance amid a debate about how aggressive monetary tightening will need to be to fight inf...

Read Entire Article