SGX Nifty indicates a cautious opening for the index in India with a 8 points gain. The Nifty Futures were trading at 15,715 on the Singaporean Exchange around 7.30 AM.
The Indian markets could open flat to mildly higher, in line with positive Asian markets today and despite mixed US markets on Wednesday, said Deepak Jasani, Head of Retail Research, HDFC Securities.
The Nifty is expected to open flat at 15,715. On Wednesday (July 28), the Nifty gave a sharp up move after making a low of 15,513. The Nifty will face resistance in 15,720-15,780 range , above which 15,850 levels can be seen. On the downside, it will take support in the 15,580-15,620 range. Any fall below 15,580 may take it to the 15,500 to 15,450 range, said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head, PMS - Hem Securities said, "Asian markets opened positive at the beginning, rebounding from steep losses sparked by Beijing’s crackdown on private enterprises. Tatva Chintan Pharma Chem will make its market debut today. The RBI has imposed Rs 5 crore penalty on the Axis bank for contravention of RBI's cybersecurity framework. Immediate Support and Resistance for Nifty 50 are 15600 and 15900. Overall, the markets look bullish and we believe that any significant dip is a good opportunity to accumulate quality stocks."
US stocks and the dollar slipped on Wednesday in listless trade after the Federal Reserve gave no cluse about when it might start reducing its purchases of government bonds, even as it said the economic recovery is on track.
The Dow Jones Industrial Average fell 0.36 percent, the S&P bonds was flat, while the tech-focused Nasdaq Composite rebounded 0.7 percent after hitting its lowest in more than two months on Tuesday.
US stock indexes had a mixed finish Wednesday, after the Federal Reserve said it would keep interest rates steady near zero and retain its full range of tools to support the economic recovery during the pandemic. Investors also were focused on results streaming in from the busiest week of corporate earnings reports for the second quarter.
Stocks mostly got a boost after the Federal Reserve opted not to tighten monetary policy following a two-day meeting, reiterating that the path of recovery will depend on the virus. Powell said the topic of timing of tapering continues to be studied by the central bank and reiterated that any future decisions will remain data dependent. Powell also said the U.S. job market still had "some ground to cover" before it would be time to pull back from the economic support.
The US trade deficit in goods rose 3.5 percent in June to record $91.2 billion, and advanced US wholesale inventories climbed 0.8%, while retail inventories increased by 0.3 percent last month.
Asian shares calm
Asian shares managed an appearance of calm on Thursday as the US Federal Reserve signalled it was in no rush to taper stimulus, though the mood was fragile as investors waited to see if Beijing could stem the recent bloodletting in Chinese shares.
Shares in Hong Kong continued to see a rebound in Thursday morning trade from a two-day slmp earlier in the week. Meanwhile, Asia-Pacific markets rose after the US Federal Reserve left its benchmark interest rate near zero.
In Japan, the Nikkei 225 advanced 0.51 percent while the Topix index gained 0.26 percent. Elsewhere, South Korea's Kospi rose fractionally while the S&P/ASX200 in Australia climbed 0.47 percent.
Oil prices get a fillip
Oil prices received a fillip after data showed US crude inventories fell more sharply than analysts had forecast, overshadowing worries that a resurgent pandemic might hit demand.
Quarterly earnings today
Tech Mahindra, Colgate-Palmolive (India), AAVAS Financiers, ADF Foods, Aegis Logistics, Ajanta Pharma, CCL Products, Continer Corporation of India, Dhanuka Agritech, Dwarikesh Sugar Industries, Eris Lifesciences, Future Retail, GHCL, Home First Finance Company India, Indus Towers, JK Lakshmi Cement, Jindal Stainless (Hisar), Jyothy Labs, Laurus Labs, LIC Housing Finance, Mahindra Holidays & Resorts India, Motilal Oswal Financial Services, Oberoi Realty, Parag Milk Foods, Punjab & Sind Bank, PVR, Rayomnd, Shoppers Stop, Shriram City Union Finance, TVS Motor Company, Union Bank of India, Vaibhav Global, and Welspun Corp will release their quarterly earnings today.
