Trends on SGX Nifty Point to Negative Open for Indian Indices
The trends on SGX Nifty indicate a negative opening of the index in India with a loss of 98 points.
Indian stock markets could open lower after largely negative Asian markets today and negative U.S. markets on Tuesday, said Deepak Jasani, head of retail, HDFC Securities
Gaurav Udani, CEO and Founder of ThincRedBlu Securities, said “Nifty is expected to open negatively, with a 120 point spread at 17,920. For the past two trading sessions, Nifty has faced resistance at its 20 moving average. periods. Traders should avoid going long until Nifty closes above 18,100 with above-average volumes. “
Mohit Nigam, Head – PMS, Hem Securities, said: “Benchmarks should open on a negative note, as the trends on SGX Nifty suggest. US markets and the majority of European markets closed in the red yesterday.
“Technically, although Indian markets edged down yesterday, outperformance was seen in the majority of indices. We believe the positive market trend is intact and investors may see the markets rise again. Immediate support and resistance in the markets are 17,850 and 18,200 respectively. “
Nifty finished almost flat on November 9 after muted moves. At the close, the Nifty was down 0.13% or 24.3 points to 18,044.2.
Nifty ended the day almost on par with most other markets. Nifty broke through yesterday’s high, but there was no upward movement. A move above the 18115-18125 band could lead to more hikes while 17947-17970 is a support band for the near term Nifty.
Actions to watch
Equity-specific actions can be seen in stocks such as profit taking and ongoing inflation concerns fueled a large sell-off (company reported higher consolidated profit at Rs 3,376.4 crore in Q2FY22 vs. Rs 3,094.1 crore in Q2FY21), AstraZeneca India (reported a 54.65% drop in net profit to 11.94 crore for the quarter ended September 30, 2021).
Bank of Baroda, Zomato, Affle India, Berger Paints, Glenmark Life Sciences, India Cements, etc.
Asian stocks follow Wall Street in early trade
Asian stocks trailed Wall Street as profit taking and continued inflation concerns fueled a broad sell-off.
Traders await US CPI data tonight. The consumer price index is expected to have risen nearly 6% in October, the highest in three decades. Asian stock markets were down on Wednesday as surging prices for oil and Chinese factories added to fears that a high reading of US inflation would renew pressure on policymakers to hike rates of interest.
US stocks end lower on Tuesday
U.S. stock indices ended lower on Tuesday, with the Nasdaq Composite and S&P 500 recording long streaks of wins as market benchmarks retreated from record highs. Investors analyzed a report on wholesale inflation in the United States and announced that industrial conglomerate General Electric is planning to split into three separate companies.
In US economic data, the October producer price index rose 0.6%, in line with expectations, with the pace of wholesale inflation over the past 12 months holding steady at 8.6% . This is the highest level since the index was reconfigured in 2009, and probably one of the highest readings since the early 1980s. The National Federation of Independent Businesses said its business confidence indicator. small businesses had fallen 0.8 points to 98.2 last month, its lowest level since March.
Consumer inflation in China in line with expectations
Chinese consumer inflation for October is roughly in line with expectations, official data showed Wednesday. October’s consumer price index rose 1.5% from a year ago, against expectations of a Reuters poll for a 1.4% increase. However, producer prices rose more than expected. October’s producer price index jumped 13.5% from a year ago, above expectations of a Reuters poll for a gain of 12.4%. China ex-factory prices in October rose at the fastest rate since 1995.
China Evergrande Group is facing its biggest payment test since signs of a liquidity crunch appeared at the company five months ago. Investors are waiting to see if the ailing developer makes coupon payments totaling $ 148.1 million for three-dollar bonds before the 30-day grace periods end on Wednesday.
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Posted on: Wednesday November 10, 2021 9:01 am IST