Trends on SGX Nifty indicate a negative opening for the index in India with a 51 points loss. The Nifty futures were trading at 15,781 on the Singaporean Exchange. Indian markets could open lower, in line with largely negative Asian markets today and mildly negative US markets on Tuesday.
Nifty has closed well in the positive territory above 15,800 levels which is quite positive going forward. The index has formed a broadening pattern which is a continuation pattern. The broader range for the Nifty is 15,600-15,900, however, the short term range is 15,700-15,900. Now, since the Nifty has reversed from the lower end of the range it is likely to inch towards the upper end of the range i.e 15,900 and above levels., said Jay Thakkar VP and Head of Equity Research at Marwadi Shares and Finance Limited
The Banknifty has also reversed quite well from the lower end of the range and it has been consolidating within a range of 35000-36000 and whichever side it provides a breakout it will lead to another 1000 points move. The way the private sector banks have reversed from the lower end it seems that the probability of 36000 getting taken off is high.
India's equity benchmark indices broke a three session losing streak following positive Asian cues. At close, the Nifty 50 Index advanced 0.76% or 119.8 points to 15,812.35, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Nifty overcame the bearish signs of the candle formed on Monday and rose smartly. Positive advance decline ratio also gives bullish signals. With earnings season underway, investors will turn their attention to Infosys’s results that are expected to be posted on Wednesday and also watch the US CPI number due tonight. 15,880-15,727 could be the band for Nifty on Wednesday.
On Wednesday 15,900/15,930 (53000/53100) would be major hurdles and supports would be at 15,730/52500 and 15,700/52,400 levels, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd.
S&P Global Ratings on Tuesday affirmed India's sovereign rating at the lowest investment grade of 'BBB-' for the 14th year in a row with a stable outlook, and said that the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months.
Data expected today 12pm: India June wholesale price inflation YoY, estimated at 12.18 percent, prior 12.94 percent 2 pm: India car sales data for June.
Asia markets trade slip
Shares in Asia-Pacific mostly slipped in Wednesday morning trade following a hotter-than-expected US inflation report for June overnight.
In Japan, the Nikkei 225 slipped 0.14 percent while the Topix index sat above the flatline. The Kospi in South Korea dipped 0.26 percent.
US stocks finished lower Tuesday, after investors sifted through hotter-than-expected US consumer-price index data and parsed quarterly results from some of the country’s biggest banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc.
For the third time this year, shares of Apple Inc., Google parent Alphabet Inc., and Microsoft Corp. closed at record highs on the same day, underscoring their continued success despite a wave of Big Tech antitrust efforts.
The consumer price index in the US climbed 0.9 percent last month. The cost of used cars accounted for more than one-third of the increase, but prices for food, energy, clothing, plane tickets and hotels also rose sharply. The increase easily exceeded forecasts. Economists polled by The Wall Street Journal had estimated a 0.5 percent advance.
The rate of inflation in the 12 months ended in June climbed to 5.4 percent from 5 percent. The last time prices rose that fast was in 2008, when oil hit a record $150 a barrel. The core CPI rose 4.5 percent, the sharpest move for that measure since September 1991 and well above the estimate of 3.8 percent.
Global shares dipped back from record highs on Tuesday as investors digested news of US consumer prices rising by the most in 13 years, reinforcing expectations of tapering by the US Federal Reserve.
Oil prices up
Oil prices gained almost 2 percent on Tuesday against the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additinal crude to ship worldwide.
Brent crude rose $1.33 or 1.8 percent to settle at $76.47 a barrel, while US West Texas Intermediate crude rose $1.14 or 1.6 percent to settle at $75.25 a barrel.
Quarterly results today
Infosys, 5paisa Capital, Alliance Integrated Metaliks, Bhakti Gems and Jewellery, Craftman Automation, Dodla Dairy, Essar Securities, Hatsun Agro Product, L&T Technology Services, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and Vikas EcoTech will release quarterly earnings on July 14.
Seven stocks--Granules India, Vodafone India, NALCO, NMDC, Punjab National Bank, SAIL, and Sun TV Network--are under the F&O ban for July 14.
