SGX Nifty indicates mild negative opening for indices; RBI Monetary policy today

FPJ Web DeskUpdated: Friday, June 04, 2021, 09:13 AM IST
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Bombay Stock Exchange | File

Asian Markets are trading flat after US and European markets closed mixed yesterday. The SGX Nifty is also indicating a mild negative opening.

On Wall Street, NASDAQ ended 1.03 percent lower on Thursday. S&P 500 closed down by 0.36 percent while the Dow Jones was 0.07 percent.

Trends on SGX Nifty indicate a cautious opening for the index with a 15 point loss. The Nifty futures were trading at 15,680 on the Singaporean Exchange. Asian stocks followed Wall Street lower on Friday as signs of a strengthening US recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus. Japan's Nikkei fell 0.8 percent early in the Asian session, while MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.3 percent.

Indian equity markets shall likely open on a flat note looking at global trends, said Mohit Nigam, Head, PMS - Hem Securities for Friday June 4. Asian equity markets fell this morning and SGX Nifty also indicates a flat opening. Key support levels for the near term remain at 15,500 and 15,300. All eyes shall be at today's RBI MPC's stance on interest rate change and policy guidance. Stocks to be watched are Bharat Forge, MOIL, PNB, Bank of India and NIIT ahead of the result announcement, Nigam added.

Global equities lagged on Thursday after stepping back from near-record levels earlier in the week, as investors studies strong US data reports for economic recovery and inflation signals.

Chief Economic Advisor KV Subramanian said on June 3 that the second wave of COVID-19 has affected the momentum of economic recovery. However, he also pointed that he expects a recovery in the economy from July onwards.

The Nifty has a strong resistance at 15700 on an immediate basis wherein there is heavy call writing seen whereas 15600 is an immediate support. So the range for today is 15600-15700 levels. A break above 15700 will take Nifty to 15850 levels in a day or two whereas a breakdown below 15600 might get NIFTY into a correction mode until 15400 levels, said, Jay Thakkar - VP and Head of Equity Research at Marwadi Shares and Finance Ltd.

The Banknifty has managed to close above 35500 levels which is quite positive and a help from private sector banks like Kotak and Hdfc bank can take it higher till 36000 levels as both of these banks had shown good breakout and momentum in last trading session.

Nifty Metal is expected to bounce back from the current levels as wave 4 of the same seems to have got over.

RBI Policy meet today

The Reserve Bank of India Monetary Policy committee is meeting today to hold interest rates after a three-day meeting of its Monetary Policy Committee (MPC). The policy will likely maintain an accommodative stance, as helping economic growth remains priority. This is at the juncture where the country is witnessing a drop in daily COVID-19 caseloads but had seen a peak of close to 4 lakh daily cases only a couple of weeks ago.

Fuel prices hiked again

Petrol and diesel prices were hiked again across the four metros on Friday (May 4). The prices have been increased 18 times since May 4. In the national capital, petrol prices were increased by 27 paise from Rs 94.49 per litre to Rs 94.76 per litre and diesel prices were hiked by 28 points from Rs 85.38 per litre to Rs 85.66 per litre, according to Indian Oil Corporation.

In Mumbai, petrol is retailed at Rs 100.98 per litre and diesel at Rs 92.99 per litre. In Chennai, petrol is sold at Rs 96.23 and diesel at Rs 90.38 per litre. In Kolkata, petrol is retailed at Rs 94.76 and diesel at Rs 88.51 per litre.

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