Trends on SGX Nifty indicate a positive opening for Indian indices

3 weeks ago 23

Marginal positive trend in other Asian indices are likely to help domestic markets start on a higher note. /Representative image |

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

Nifty fell for the fourth consecutive session on April 18, dragged down by weak global cues and unencouraging first batch of Q4 corporate results. Nifty closed 1.73 percent or 302 points lower at 17173.6.

Nifty fell once again on April 18 with a downgap. On a three week basis, the Nifty has formed a bearish island reversal. It has however formed a doji after a fall on daily charts suggesting possibility of a temporary halt in the downfall. 17,003-17,387 could be the band for the Nifty over the next few days.

Marginal positive trend in other Asian indices are likely to help domestic markets start on a higher note, but intra-day volatility will keep investors on the edge, said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd. Uninspiring start to India’s corporate Q4, wholesale inflation rising to 14.55 percent in March, a hawkish Federal Reserve and no respite from rising oil prices are the key deterrents.

For Nifty, intraday support is seen only at 17,007 mark. To regain momentum on the buy side, the index needs to stay above its 200-DMA at 17,165 mark. From a chartist standpoint, the technical landscape will improve considerably only if Nifty closes above its biggest hurdles at 17,847 mark with intraday hurdles at 17,477 mark.

Asian stocks up

Stocks in Asia mostly rose Tuesday with investors weighing Chinese measures to support the economy and the prospect for faster Federal Reserve policy tightening to fight inflation. On Monday, the People’s Bank of China announced it will increase financial support for industries, businesses and people affected by COVID-19.

US stocks close with small losses

All three major US stock indexes ended with small losses in a choppy trading session on Monday as earnings season prepared to move into full swing with rising uncertainty over the economic outlook. Investors remain concerned about rising inflation and how that may weigh on the economy, as the Federal Reserve struggles to keep a lid on rising prices.

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