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Updated on: Tuesday, November 16, 2021, 09:14 AM IST

Stock market indices likely to open higher amidst mixed global clues

Indian markets could open higher following the gains in the Asian markets today, and gains in the Nasdaq Composite in the US markets on Monday./Representational image of stock market | Pixabay

Indian markets could open higher following the gains in the Asian markets today, and gains in the Nasdaq Composite in the US markets on Monday./Representational image of stock market | Pixabay

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Trends on SGX Nifty indicate a positive opening for the index in India with a 60-point gain. The Nifty futures were trading at 18,199 on the Singaporean Exchange around 7:30 am today.

Indian markets could open higher following positive Asian markets today and despite flat US markets on Monday, said Deepak Jasani, Head-Retail, HDFC Securities.

"Nifty is expected to open around 18,160, up by 50 points. Nifty has resistance in 18200 and 18250 range and support in 18050 and 17950 range. Aggressive traders can consider buy on dips with strict stoploss loss," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

Mohit Nigam, Head - PMS, Hem Securities said, "Benchmark Indices are expected to open on a positive note as suggested by trends on SGX Nifty. US markets closed flat while European markets ended with modest gains yesterday.

"Most of Asian markets are trading in green in the early Tuesday trade. Gold price hit a five month high on Monday. Oil prices fell as more COVID cases in Europe raises concern over demand. Yesterday FIIs net bought shares worth Rs 424.74 crore, while DIIs net purchased shares worth Rs 1,524.67 crore in the Indian equity market Stock specific actions can be witnessed in stocks such as Macrotech Developers (company launched its Rs 4,000 crore QIP on Monday), Escorts (Escorts Agri Machinery will be increasing the prices of its tractors effective November 21), Cipla (selected in the S&P Dow Jones Sustainability Index for the Emerging Markets for 2021).

"On the technical front, if markets sustain well above 18,000 levels for 2-3 sessions, we can easily witness 18500-18600 levels in the near term once again. immediate support and resistance level in Nifty 50 are 18,000 and 18,250 respectively," Nigam added.

Nifty closed almost flat on November 15 after a higher opening. At close Nifty closed 6.7 points or 0.04 percent higher at 18109.45.

Nifty closed flat on November 15 making a doji after an uprun. Advance decline ratio was in the negative reflecting profit taking across small and midcaps. The Nifty is finding it difficult to build on the gains. Institutional flows and volumes need to grow to bring a follow through rise. 18,210 could be a resistance in the near term, while 1,7978 is a support.

Asian stocks steady

Asian stocks were steady Tuesday as traders weighed inflation risks and monitored the first face-to-face virtual summit between U.S. President Joe Biden and Chinese leader Xi Jinping. Australia’s central bank is expected to keep the interest rate steady until 2024, according to minutes from its November monetary policy meeting released Tuesday.

US stocks close lower

The S&P 500 and Nasdaq Composite indexes closed lower, limiting wins to two days in a row, while Dow industrials also gave up earlier gains, as investors remain focused on rising inflation and its impact on yields for government debt and borrowing costs.

Monday’s modest pullback in equities came as Treasury yields jumped across the board on expectations that the Federal Reserve may have to taper its monthly bond purchases at a faster-than-anticipated pace, given signs of persistent inflation. The yield on the 10-year Treasury note rose 3.8 basis points to around 1.621%, the highest in three weeks.

The New York Fed’s Empire State manufacturing business conditions index rose 11.1 points to 30.9 in November. Economists had expected a reading of 22.

The dollar index, which measures the currency against six peers, hit 95.420 on Monday, its highest since July 2020, and was last up 0.3 percent.

Trade deficit falls marginally

India trade deficit fell marginally in October as exports rose and imports eased. Trade deficit stood at $19.73 billion, compared to $22.59 billion in September. In September, the monthly deficit was at an all-time high. Exports rose 5.5 percent month-on-month to $35.65 billion in October. On an annual basis, it increased 43.1 percent. Imports fell 1.8 percent sequentially to $55.37 billion. It increased 62.5 percent over the preceding year.

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Published on: Tuesday, November 16, 2021, 08:58 AM IST
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