Trends on SGX Nifty indicate a negative opening for the index in India with a 27-points loss. The Nifty futures were trading at 17,791 on the Singaporean Exchange around 07:30 AM.
Indian markets could open flat to mildly lower, in line with mostly lower Asian markets today and despite sharply higher US markets on Tuesday, said Deepak Jasani, Head-Retail, HDFC Securities.
"Nifty is expected to open flat to negative at 17,775, down by 60 points. Nifty has support in 17,580-17,600 range and resistance in 17,850-17,900 range. Traders can consider buy on dips with strict stoploss as a strategy in current markets," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities said, "If Nifty continues its uptrend, then the level of 17,750 can act as a good support level and can go till the next resistance level which is at 17,935. But on the other hand, if Nifty slip below 17,750 then can show a move till 17,620 level."
Nifty closed at almost the intra day high with high volumes and positive advance decline ratio. Nifty shows good momentum. The next resistance for the Nifty is 17,912-17,948 while the support is at 17,711, Jasani added.
US stocks close positive on Monday
Global equity markets rallied on Tuesday as US and European tech stocks rebounded and the dollar strengthened ahead of US payrolls data on Friday that could reveal the Federal Reserve’s next move on tapering its support to the economy.
The Dow Jones Industrial Average rose 0.92 percent, the S&P 500 gained 1.05 percent and the Nasdaq Composite added 1.25 percent.
Asian shares decline
Asian shares dropped on Wednesday, reversing early gains, after an overnight rebound in US and European stocks as investors shrugged off worries about a potential US government debt default, while oil paused near new multi-year highs.
In Japan, the Nikkei 225 shed earlier gains to fall 0.18 percent while the Topix index advanced 0.4 percent. South Korea’s Kospi slipped 0.46 percent.
Moody's hikes India's credit rating to stable
Ratings agency Moody's hiked India's sovereign credit rating outlook to stable from negative, citing an improvement in the financial sector and faster-than expected economic recovery across sectors. "The decision to change the outlook to stable reflects Moody's view that the downside risks from negative feedback between the real economy and financial system are receding," Moody's said in a report on October 5.
It said that with higher capital cushions and greater liquidity, banks and non-bank financial institutions pose much lesser risk to the sovereign than previously anticipated.
IMF expects global economic growth to fall slightly below July forecast
The International Monetary Fund expects global economic growth in 2021 to fall slightly below its July forecast of 6 per cent, citing risks associated with debt, inflation and divergent economic trends amid the COVID-19 pandemic. The global economy was bouncing back but the pandemic continued to limit the recovery, with the main obstacle posed by the "great vaccination divide" that has left too many countries with too little access to COVID-19 vaccines.
The Reserve Bank of New Zealand on Wednesday raised its official cash rate to 0.5 percent, joining South Korea and Norway in being among the earliest countries to raise rates in the pandemic era. In neighbouring Australia, the central bank held interest rates at a record low 0.1% for an 11th straight month on Tuesday.
Oil prices up
Oil prices jumped on Tuesday, with US crude hitting its highest since 2014 and Brent futures climbing to a three-year high, after the OPEC+ group of producers stuck to its planned output increase rather than raising it further.
US West Texas Intermediate (WTI) oil closed up $1.31, or 1.7 percent, at $78.93 a barrel. During the session it surged more than 2 percent to as high as $79.48, the most in nearly seven years. Brent crude settled up $1.30, or 1.6 percent, at $82.56.
Earlier, Brent hit a three-year high of $83.13.
Sebi tweaks regulations for REITs,, InvITs
Markets regulator Sebi has tweaked regulations for REITs and InvITs regulations with respect to exit option for dissenting unit holders in various scenarios, including acquisition and change in sponsors. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are emerging investment vehicles.
The exit option for dissenting unit holders would be available in case of an acquisition, change in sponsor, inducted sponsor or change in control of sponsor or inducted sponsor is triggered pursuant to an open offer.
The US dollar edged higher on Tuesday, lingering close to the one-year high hit last week, as traders remained circumspect ahead of key payrolls report at the end of the week that could provide clues to the US Federal Reserve’s next move.
The US dollar index, which measures the currency against six rivals, was 0.2 percent higher at 93.981, moving back towards Thursday’s peak of 94.504, its highest since late September 2020.
Moody’s Investors Service said on Tuesday the stable outlook on the United States’ Aaa rating reflects its view that the country would raise its debt limit and continue to meet its debt service obligations in full and on time.
If the limit is not raised, Moody’s said it believes the government would prioritize debt payments “to preserve the full faith and credit of the US government and avoid significant disruptions in the global financial markets.”
Moody’s said the US faces interest payments of about $4 billion on October 15, $14 billion on November 1, and $49 billion on November 15 and that a missed payment would be classified as a default.
The US trade deficit increased to a record $73.3 billion in August as a small gain in exports was swamped by a much larger increase in imports.
The Commerce Department reported Tuesday that the monthly trade deficit increased 4.2 percent in August, rising to an all-time high, surpassing the previous record of $73.2 billion set in June. The trade deficit represents the gap between what the country exports to the rest of the world and the imports it purchases from other countries.
NALCO under F&O ban
One stock - NALCO - is under the F&O ban for today.