SGX Nifty indicate a flat opening for the index in India with a 9-points fall.
Indian markets could open flat to mildly higher, in line with largely positive Asian markets today and mildly positive US markets on Thursday.
"Nifty is expected to open around 17,260 , up by 30 points. Nifty is in a strong uptrend and is now headed for 17,275 and 17,310 in the coming few trading sessions.17,150 and 17,060 will act as strong support levels for Nifty. Traders can consider buying on every correction with strict stop-loss as long as Nifty is trading above 16900 levels," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities, said, the benchmark Indices are expected to open on a flat note as suggested by trends on SGX Nifty. "US Indices closed with modest gains yesterday with S&P 500 and NASDAQ closing at another fresh record high. French, German and UK Indices also closed marginally higher yesterday."
Stock-specific actions can be witnessed in stocks such as Reliance Industries (Reliance Retail Ventures as acquired sole control of Just Dial), Granules India (Company received license to manufacture and market 2-Deoxy-D-Glucose), Rossari Biotech (Company completed acquisition of the first tranche of 76 percent of equity share of Tristar Intermediates).
On the technical front, 17,300 may act as immediate resistance for Nifty 50 followed by 17,400 while 16,900 remains a crucial support for Nifty 50, Nigam added.
On September 2, the Nifty reversed the losses of the previous day and nullified the bearish signal. Advance decline ratio has improved to much above 1:1. FPIs seem to be in a mood to keep buying Indian stocks. The Nifty keeps breaching resistances one after the other in fresh territory. Nifty could now stay in the 17,340-17,154 band for the next 1-2 sessions, said Jasani.
Watch out for
Markit India PMI Services for August (previous 45.4) at 10.30 AM
Markit India PMI Composite (previous 48.2) at 10.30 AM
Asian stocks trade mixed
Asian indices were trading mixed with Kospi and Taiwan weighted up 0.5 percent each, while Hang Seng and Straits Times trading in red.
Nikkei was trading +0.91 percent up while Hang Seng trading (-)0.40 percent down in the early Friday trade.
US stocks close at fresh highs
The S&P 500 index and the Nasdaq Composite ended at fresh records Thursday, after data showed weekly jobless benefit claims improved slightly ahead of Friday’s August employment report. Weekly initial jobless benefit claims dropped by 14,000 to 340,000 – a pandemic low - in the week ended Aug. 28.
In economic data, US factory orders rose 0.4 percent in July, as manufacturers worked to pump out more goods to keep up with high demand. Economists surveyed by the Wall Street Journal had forecast a 0.3 percent increase. US productivity also rose at a revised 2.1 percent annual pace in the second quarter, a bit lower than the government’s previously reported 2.3 percent rise from April to June, while a new report showed the US international trade deficit falling from a record high, notching a decline of 4.3 percent in July to $70.1 billion.
Investors have their eyes on jobs report that comes out Friday from the Bureau of Labor Statistics. Economists are expecting the US to have added 720,000 jobs in August.
Owing to an uptick in global orders, India's merchandise exports shot up in August, rising by a major 45.17 percent as compared to August, 2020. Impressively, exports also rose by 27.5 percent as compared to August, 2019, before the pandemic struck. In August, imports saw an equally large rise, going up by 51.5 percent to $47 billion. The trade deficit in August widened to $13.87 billion vs $8.2 billion, a year ago.
Asian stocks rose Friday and the dollar held a drop after cyclicals led Wall Street to a record high ahead of a US jobs report that will shape views on the outlook for Federal Reserve monetary policy.
China PMI slumps
Activity in China’s services sector slumped into sharp contraction in August, as restrictions to curb the COVID-19 Delta variant threatened to derail the recovery in the world’s second-biggest economy. The Caixin/Markit services Purchasing Managers’ Index (PMI) fell to 46.7 in August from 54.9 in July, plunging to the lowest level since the pandemic’s first wave in April 2020.
Nifty reversed the losses of the previous day and nullified the bearish signal. Advance decline ratio has improved to much above 1:1. FPIs seem to be in a mood to keep buying Indian stocks. The Nifty keeps breaching resistances one after the other in fresh territory. Nifty could now stay in the 17340-17154 band for the next 1-2 sessions.
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