Trends on SGX Nifty indicate a gap-up opening Indian indices

3 weeks ago 12

Nifty broke the 5-day losing streak on April 20, boosted by positive global cues. /Representative image | AFP PHOTO / FRED DUFOUR

Trends on SGX Nifty indicate a gap-up opening for the broader index in India. The Indian markets could open higher in line with mostly higher Asian markets today and despite mixed US markets on Wednesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.

Nifty broke the 5-day losing streak on April 20, boosted by positive global cues. At close Nifty was up 1.05 percent or 177.9 points at 17,136.5.

Nifty has formed an inside bar i.e. the high low bar of April 20 is within those of April 19. This does not have any predictive value, said Jasani. Only when the high of April 19 (17,276) is breached, one can turn mildly bullish. On falls, 16959-16980 could provide support. The lower than normal volumes suggests that the upmove has got more to do with slower FPI sales than aggressive buying, Jasani added.

On April 20, the Sensex closed up 574.35 points or 1.02 percent at 57,037.50. The broader Nifty was up 177.80 points or 1.05 percent at 17,136.50.

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, gains in other Asian indices are likely to reflect in local gauges in early trades despite overnight fall in US markets. Helping the sentiment is the 10-year U.S. Treasury yield which fell to 2.88 percent after having touched 2.94 percent-- its highest level since late 2018. The recent continuous fall provides an opportunity for traders to lap up beaten-down stocks even though rising inflation concerns could keep markets on the edge. Nifty is likely to get support at 16,597 mark.

To regain momentum on the buy side, and from a chartist standpoint, the technical landscape will improve considerably only if Nifty closes above its biggest hurdles at 17,324 mark, Tapse added.

Asian stocks trade higher

Asian stocks traded mostly higher on Thursday as the market pondered a burgeoning debate around whether inflation is peaking that sparked a rally in Treasuries.

US stocks close mixed

US stock indexes posted a mixed finish Wednesday, with the Dow Jones Industrial Average lifted after solid earnings, while a plunge for shares of streaming giant Netflix Inc. drags down the Nasdaq as the S&P 500 ends with a small loss. Dow was driven to a second-successive higher close by positive earnings from consumer giant Procter & Gamble and IT firm IBM Corp .

The Dow Jones Industrial Average...

Read Entire Article