Trends on SGX Nifty indicate positive opening for the indices. The Nifty futures were trading at 15,794 on the Singaporean Exchange. Indian markets could open higher, in line with positive Asian markets today and positive US markets on Friday, said Deepak Jasani, Head of Retail Research, HDFC Securities.
Benchmark indices are expected to open on a positive note as suggested by trends on SGX Nifty, said Mohit Nigam, Head-PMS, Hem Securities. Some stock specific actions can be witnessed in stocks such as Maruti Suzuki (launched Maruti Suzuki Smart Finance), Equitas Small Finance Bank (got RBI nod to apply for amalgamation plan), Adani Ports (Raising upto $750M in USD bonds). Earnings to watch today include HFCL, HMT, Steel Strip Wheels. Immediate support and resistance for Nifty 50 are 15,600 and 15,800 respectively.
At 09:03 AM, the Sensex was up 260.20 points or 0.50 percent at 52,646.39, and the Nifty was up 73.50 points or 0.47 percent at 15,763.30.
Asian markets trading high
On Monday, Asian stock markets were trading higher in early trade. Asian shares were enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential piftalls lay ahead this week.
Japan’s Nikkei 225 jumped 2.19 percent while the Topix index gained 2.18 percent. South Korea’s Kospi advanced 0.87 percent. The three major US stock indices rallied to record closing highs on Friday. The Dow Jones Industrial Average rose 1.3 per cent, the S&P 500 gained 1.12 per cent, and the Nasdaq Composite added 0.96 per cent.
Major US stock benchmarks booked a third straight week of gains to end Friday at all-time highs, staging a recovery from the previous session that was marked by doubts about global economic growth in the pandemic. All three benchmarks rose for a third straight week. By contrast, the Russell 2000 fell around 1.1 percent for a second straight week of losses.
Yields edged back up Friday though, with the 10-year USTreasury yield rising 6.7 basis points to settle at 1.354 percent. The yield hit a five-month low below 1.25 percent on Thursday.
In economic news, U.S. wholesale inventories climbed 1.3 percent in May, compared with 1.1 percent that had been expected by economists on average, suggesting that inventories remain tight amid supply-chain bottlenecks and amplified demand in the rebound from the pandemic.
The People’s Bank of China announced Friday it was cutting reserve requirements for its banks to help bolster the world’s number-two economy. The PBOC said, effective July 15, that reserve requirement ratio, or RRR, would be lowered by a half point, to a weighted average of 8.9 percent.
Companies in the S&P 500 index are expected to see a 63.6 percent increase in earnings in the second quarter from a year before, which would mark the biggest 12-month climb since the fourth quarter of 2009, according to FactSet analysts.
Data expected today - 5:30pm: India May Industrial production YoY; estimate 32.0 percent, prior 134.4 percent; 5:30pm: India May Consumer Price Inflation YoY; estimate 6.59 percent, prior 6.30 percent.
Asian shares are enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth. China stocks rose in early trading on Monday, lifted by the central bank’s surprise cut in the reserve requirement ratio (RRR) to support the economy late on Friday.
Indian benchmark equity indices ended lower for the second consecutive session on July 09. At close, the Nifty was down 38.10 points or 0.24 percent at 15,689.80.
Nifty closed lower for the second consecutive week, down 0.21 percent over the week as worries return over the global economic recovery amid the spread of COVID-19 variants. On daily charts however, the Nifty has formed a doji after a fall suggesting indecision at these levels and a possibility of an upward bounce. Nifty also made a double bottom in the 15,633-15635 band. On upmoves, Nifty could face resistance in the 15,886-15,915 band. 15,635 could be a support for the near term while 15,506 could be a support for this week.
