Trends on SGX Nifty indicate a flat to positive opening for the index in India with a 48 points gain. The Nifty futures were trading at 16,213 on the Singaporean Exchange around 7.30 AM.
The S&P 500 index closed at record high on Tuesday on gains in Apple and healthcare stocks, despite concerns over a surge in the Delta variant of the coronavirus taking some shine off an upbeat corporate earnings season.
The Dow Jones Industrial Average rose 278.24 points or 0.8 percent to 35,116.4, the S&P 500 gained 35.99 points or 0.82 percent to 4,423.15 and the Nasdaq Composite added 80.23 points or 0.55 percent to 14,761.30. The markets could open higher, in line with largely positive Asian markets today and higher US markets on Tuesday, said Deepak Jasani, Head of Retail Research, HDFC Securities
"On August 3, Nifty gave a strong breakout from its previous range with good volumes. Nifty is expected to open at 16200 , up by 70 points. Nifty may see 16250 and 16400 levels in the next few days. 16000 and 15950 will act as strong support for Nifty," said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
Nifty closed well in the positive territory in the last trading session providing a breakout from a two-month range which was approximately 15950-16000 on the upside and 15,500 on the downside, which is a breakout of approximately 500 points. Short-term target levels for Nifty comes at 16,450 to 16,500 levels. The daily momentum indicators suggest MACD has turned positive after a 2-month decline which is quite positive for Nifty going further.
Jay Thakkar - VP and Head of Equity Research at Marwadi Shares and Finance Limited, said, "As far as Bank Niifty is concerned it has managed to close above the 35000 levels, hence from here on Bank Nifty is likely to move toward 35,700 to 36000 in the near term. The momentum indicators on the daily chart on bank Nifty have also turned positive favouring the bulls. As far as derivative data is concerned Nifty has witnessed the highest open interest on the call front in the strike of 15,900 -16,000 levels," he said.
These levels will act as crucial supports going forward. And we would see the rally fueled further by short covering as there were plenty of shorts in the system. The derivative data of bank nifty has the highest open interest in the near team at 35,000 strike, as those levels are taken off we are expecting good short covering there as well until the levels of 35,700-36000. 35,000 will act as a crucial support, Thakkar added.
Asian shares advance
Asian shares advance to one-week highs on Wednesday, led largely by strong US corporate earnings, although the mood remained cautious as the rapidly spreading Delta variant of the coronavirus clouds the global economic outlook.
4 IPOs will open for subscription
Four initial public offerings worth more than Rs 3,600 crore open for subscription on August 4 and close on August 6--Devyani International, Windlas Biotech, Exxaro Tiles and Krsnaa Diagnostics.
Experts recommend investing in Krsnaa Diagnostics and Devyani International shares because both could make listing gains and are also good long-term bets.
Quarterly earnings today
Adani Green, Apollo Tyre, HPCL, State Bank of India, Tata Communcation, Titan Company, Bosch, and Godrej Consumer Products.
Stocks to watch
Godrej Properties, Tata Steel and Tata Consultancy Services
FII & DII Activity
Foreign institutional investors (FIIs) net bought shares worth Rs 2,116 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 298 crore in the Indian equity market on August 3, as per provisional data available on the NSE.
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