Trends on SGX Nifty indicate a negative opening for indices in India

1 month ago 7

Tracking weakness in other Asian indices, market turbulence may be a theme in today’s trading session /Representative image | File pic

Tracking weakness in other Asian indices, market turbulence may be a theme in today’s trading session as investors at Dalal Street brace to react to the multi-decade print of US CPI which has bolstered the odds of a jumbo rate hike by the Federal Reserve.

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said, The street will first react to Infosys earnings announced after market hours on April 13 and HDFC Bank numbers, which were released on April 16.

Technically speaking, Nifty’s intraday support is seen only at 17,427 mark. The make-or-break for Nifty’s medium term support is seen at the 200-DMA at 17,160 mark. Only below 17,160 zone, expect a waterfall of selling which could take Nifty down to 16,691 mark with inter-month perspective. From a chartist standpoint, the technical landscape will improve considerably only if the index closes above its biggest hurdles at 17,927 mark, Tapse added.

In the previous session, both benchmark indices ended in red with Sensex closing 237.44 points, or 0.41 percent down at 58,338.93. The NSE Nifty 50 was down 54.60 points, or 0.31 percent at 17,475.70.

Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance Co. Ltd. said, Globally managing inflation has taken precedence over growth as higher commodity prices especially that of crude oil and agriculture commodities has led to surge in cost of living. With central banks around the world taking monetary measures to contain inflationary pressures, its possible impact on growth needs to be watched. Inflationary pressures have also been weighing on markets too given the possible impact on margins and thus earnings. Hence, any developments on these fronts need careful monitoring.

Benchmark Indices are expected to open on a negative note as trends on SGX Nifty indicates a gap-down opening with 60 points loss, said Mohit Nigam, Head - PMS, Hem Securities. Shares in Asia largely slipped in Monday morning trade as investors await Chinese economic data, including the economic powerhouse’s first-quarter gross domestic product figures. Wall Street stocks finished lower while bond yields and the dollar rose on Thursday as investors worried about the potential for aggressive US policy tightening as other central banks around the world moved to reduce support. Also, Oil prices rise on supply concerns as the Ukraine crisis deepens....

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