Trends in SGX Nifty indicate a positive opening for Indian indices

1 month ago 36

Markets are likely to commence on a firm note on the back of firmess in Asian stocks. /Representative image | Photo Credit: AFP

Indian markets could open flat despite mostly higher Asian markets today and higher US markets on Friday, said Deepak Jasani, Head-Retail Research, HDFC Securities.

Nifty once again could not hold on to intra day gains and sold off post 1315 Hrs on May 13. It closed 0.16 percent or 26 points lower at 15782.2, in the negative for the fifth consecutive session. For the week, Nifty fell for the fifth consecutive week falling 3.8 percent.

The fact that Nifty keeps witnessing selling pressure on rises during the day is disappointing. Nifty is displaying lack of strength to sustain at highs. 15671 is the near term low where the Nifty could take support. Small and Midcap stocks are almost on the verge of entering bear market territory and continue to see higher amounts of weakness impacting broad market sentiments, Jasani said.

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, a sharp recovery in the US markets on Friday and subsequent gains in SGX Nifty in early trades today is hinting a gap up start for our stock markets. However, cautious trend could prevail as the street will anxiously await to the WPI Inflation numbers slated to trickle in on Tuesday.

"We expect the inflation numbers are likely to be higher, just like the CPI Inflation numbers that trickled in last week. We suspect, the benchmarks at Dalal Street to trade volatile with upside capped and probably collapse heavily if Nifty slips below its biggest support at 15671 mark. With Fed and other central banks across the globe trying to rein on inflation desperately, it’s going to be a tough call to take bullish bets even on any dips from hereon", added Tapse.

Asian markets firm up in early trade

Asian share markets were attempting a rare rally on Monday after Wall Street managed a bounce from deep lows, though investors were also braced for bad news from Chinese economic data due later in the session.

MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.3 percent, after shedding 2.7 percent last week to hit a two-year low. Japan's Nikkei rose 1.2 percent, having lost 2.1 percent last week even as a weak yen offered some support to exporters.

US markets bounce back

US stocks ended sharply higher Friday, but all three major benchmarks still booked another week of losses, as investors assessed the scope for furthe...

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