Trends on SGX Nifty indicate negative opening for Indian indices

1 month ago 16

Nifty closed lower for the second consecutive session on April 12 in line with other global markets. /Representative image | Photo Credit: AFP

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

Key domestic benchmark indices may log gains in early trades, tracking upmove in other Asian gauges but volatility would continue amid uncertainty due to rising inflation levels, US bond yields and fresh surge in oil prices. Prashanth Tapse, Vice President (Research), Mehta Equities Ltd said, market turbulence may be a theme in today’s trading session as Dalal Street heads for a long weekend.

Stock selection is likely to become more important as investors need to distinguish which companies are most impacted by rising costs, and which have the pricing power to pass those higher costs through to consumers and maintain their profit margins.

Focus will also be on Infosys' Q4 results which will be the biggest catalyst for the day. The street will spy with one big eye on the management commentary —— primarily on future outlook, attrition rates, and deal momentum.

Nifty closed lower for the second consecutive session on April 12 in line with other global markets. Nifty closed 0.82 percent or 144.7 points lower at 17,530.3.

Nifty, after falling gap-down, has formed a hammer like pattern after a fall, suggesting possibility of an upward reversal. Advance decline ratio fell to much below 1:1 suggesting broad based profit taking in the markets. Nifty could remain in the 17,405-17,601 band in the near-term.

Mohit Nigam, Head - PMS, Hem Securities said, benchmark indices are expected to open on a flat to positive note as suggested by trends on SGX Nifty. US stock markets ended lower on Tuesday as investors are reacting to inflation data, as US inflation jumped 8.5 percent in past year, highest since 1981. Dow Jones was down by 87.4 points, whereas NASDAQ was down by 0.36 percent to 13,940.0 levels. 

On the technical front 17,400 and 17700 are immediate support and resistance in Nifty 50. For Bank Nifty 37200 and 38000 are immediate support and resistance respectively.

Results today

Infosys, Den Networks, and Lesha Industries etc will release quarterly results today

Asian stocks up

Asian stocks and US equity futures rose Wednesday, while Treasuries dipped, as investors calibrated economic risks fr...

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