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Updated on: Wednesday, October 20, 2021, 09:17 AM IST

Stock market indices may open flat to mildly higher amid mixed Asian cues

The Nifty futures were trading at 18,453 on the Singaporean Exchange around 07:30 AM/ File      |  AFP PHOTO / FRED DUFOUR

The Nifty futures were trading at 18,453 on the Singaporean Exchange around 07:30 AM/ File | AFP PHOTO / FRED DUFOUR

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Trends on SGX Nifty indicate a positive opening for the index in India with a 27-points gain. The Nifty futures were trading at 18,453 on the Singaporean Exchange around 07:30 AM.

Indian markets could open flat to mildly higher following rangebound and mixed Asian markets today, and despite gains in the US markets on Tuesday, said Deepak Jasani, Head-Retail, HDFC Securities.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty is expected to open flat to positive at 18446, up by 10 points. Nifty made a bearish engulfing pattern in yesterday's trading sessions. The correction in Nifty may extend to 18350 and 18250 levels. Traders are suggested to book profits and keep strict stop-loss in the current markets.”

Mohit Nigam, Head - PMS, Hem Securities, said, "The benchmark Indices are expected to open on a positive note as suggested by trends on SGX Nifty. US markets closed higher on the previous trading session while major Asian Indices opened on a positive note today.

"The COVID-19 infections rate seems to be declining further as the daily addition of cases have been below the 20,000 mark for more than a week now, which resulted in easing of further restrictions across the country. The aviation sector is allowed to operate domestic flights at full capacity with effect from October 18, while theatres and auditoriums will be reopened in Maharashtra from October 22.

"Banking sector will be in focus in coming days as a lot of banks will start releasing their quarterly earnings including ICICI Bank, IDBI Bank, Bank of Maharashtra, South Indian Bank, Federal Bank, and Yes Bank. We can see more action seen in Paras Defense as European drone developer FIXAR ties up with Paras Aerospace which is a subsidiary of Paras Defense to enter the Indian market.

"On the technical front, benchmark Indices looks in a positive zone and is likely to continue this bull run. Immediate support and resistance in Nifty 50 are 18,200 and 18,700 respectively," Nigam added.

The benchmark indices closed lower on Tuesday (October 19). The Sensex was down 49.54 points or 0.08 percent at 61,716.05. The broader Nifty was down 58.20 points or 0.31 percent at 18418.80. About 959 shares have advanced, 2321 shares declined, and 122 shares are unchanged.

US stocks close higher on Tuesday

The US stock indexes closed higher on Tuesday with the biggest boosts from the technology and healthcare sectors as investors appeared to bet on solid quarterly reports even as some worried that it was too early to celebrate.

The Dow Jones Industrial Average rose 198.7 points, or 0.56 percent, to 35,457.31, the S&P 500 gained 33.17 points, or 0.74 percent, to 4,519.63 and the Nasdaq Composite added 107.28 points, or 0.71 percent, to 15,129.09.

Asia-Pacific shares trade mixed

Shares in Asia-Pacific were mixed in Wednesday morning trade as China kept its benchmark lending rate unchanged. Japan’s Nikkei 225 climbed 0.6% while the Topix index edged 0.55 percent higher. South Korea’s Kospi shed 0.13 percent.

The Federal Reserve will wait until 2023 before raising interest rates, according to a majority of economists in a Reuters poll who nonetheless said the greater risk for the U.S. economy was persistently higher inflation over the coming year.

While half the members of the US central bank's policy-setting committee projected last month that the Fed would raise its benchmark overnight lending rate - federal funds rate - next year, most economists surveyed were more cautious.

Japan's export growth weakens to slowest in 7 months in September

Japan’s export growth weakened to its slowest in seven months in September, while a surge in imports added to worries that pandemic-led global supply chain snags could derail a fragile economic recovery.

While ahead of forecasts, export growth weakened from 26.2 percent in the previous month and was the slowest since February. Shipments to China, Japan’s largest trading partner, rose 10.3 percent in September year-on-year, led by semiconductors and plastic materials, while car exports fell 71.9 percent.

Oil near highest-level in 7 years

Oil held near the highest level in seven years after an industry report pointed to another increase in US crude stockpiles.

Futures in New York were steady near $83 a barrel in early Asian trading after advancing more than 3 percent over the past four sessions. The American Petroleum Institute reported crude inventories climbed by 3.29 million barrels last week, according to people familiar with the figures. That would be a fourth weekly expansion if confirmed by official government data later Wednesday.

Oil has rallied to the highest level since 2014 as an energy crunch coincided with rebounding demand from economies recovering from the pandemic. Russia is signaling that it won’t go out of its way to offer Europe extra natural gas to ease the current crisis unless it gets regulatory approval to start shipments through the controversial Nord Stream 2 pipeline.

Gold prices up

Gold prices were on the front foot on Tuesday, rising as much as 1percent, as a sluggish dollar lifted bullion’s appeal in the face of increasing inflation expectations. Spot gold was up 0.8 percent at $1,778.76 per ounce by 1224 GMT, after hitting a session high of $1,784.26. US gold futures gained 1 percentto $1,783.

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Published on: Wednesday, October 20, 2021, 09:16 AM IST
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