Trends on SGX Nifty indicate a cautious opening for the index in India with a 12-points gain. The Nifty futures were trading at 17,546 on the Singaporean Exchange around 07:30 hours IST.
Indian markets could open flat to mildly higher, despite mixed Asian markets today and positive US markets on Wednesday, said Deepak Jasani, Head-Retail, HDFC Securities.
"Nifty is expected to open flat to negative, down by 15 points around 17500. Yesterday Nifty gave a strong bullish breakout with good volumes. Nifty may test 17580 and 17610 range in the next few trading sessions . Traders can use buy on dips strategy keeping strict stop loss. The previous resistance zone of 17425-17450 will act as a strong support zone for Nifty", said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities, said shares in Asia-Pacific were mixed in Thursday morning trade, with casino shares in Hong Kong mostly seeing another day of losses. "The S&P 500 and Dow Jones Indexes rose on Wednesday on mildly positive factory data and higher oil prices, although concerns over a slowing economic and higher corporate taxes kept sentiment subdued. Tokyo stocks opened higher on Thursday as investors took heart from a Wall Street rebound, with hopes for stimulus under the next government in Japan continuing to support the market. Oil prices slipped on Thursday, but kept most of the previous day's gains after a larger-than-expected drawdown in crude oil stocks in the United States, the world's largest oil consumer.
Nifty closed at record highs on September 15 aided by broad upmove across sectors. The Cabinet approval for Production Linked Incentives (PLI) for auto sector and relief measures for Telecom sector aided the rise. At close, the Nifty was up 0.79 percent or 137.3 points at 17517.4. India was the best performer in the Asian region.
Advance decline ratio on September 15 was sharply in the positive and volumes were higher than the recent average. Nifty shows strength in new territory. The upmove on September 15 could have postponed the start of correction by a couple of days. 17,630 is the next target for the Nifty while 17,358 could be a support.
Stocks to watch out for
Stock specific actions can be witnessed in stocks such as Infosys (the company has collaborated with SAP to provide Business Process Transformation), Fineotex Chemical (the company has entered into a strategic collaboration with Eurodye-CTC, Belgium, to commercialise specialty chemicals for the Indian market). Crucial support for Nifty 50 is 17,400 while Nifty may face some resistance at 17,700, said Nigam.
The S&P 500 and Dow Jones indexes rose on Wednesday on mildly positive factory data and higher oil prices, although concerns over a slowing economic recovery and higher corporate taxes kept sentiment subdued.
The Dow Jones Industrial Average rose 92.87 points, or 0.27 percent, to 34,670.44, the S&P 500 gained 11.10 points, or 0.25 percent, to 4,454.15 and the Nasdaq Composite lost 9.66 points, or 0.06 percent, to 15,028.10.
Asian shares trade mixed
Shares in Asia-Pacific were mixed in Thursday morning trade, with casino shares in Hong Kong mostly seeing another day of losses. The Nikkei 225 in Japan slipped about 0.1 percent while the Topix index fell 0.15 percent. South Korea’s Kospi edged 0.47 percent lower.
Oil prices down
Oil was down Thursday morning in Asia, but retained most of Wednesday’s gains, after a larger-than-expected draw in US crude oil stocks in the U.S. gave the black liquid a boost.
Brent oil futures inched down 0.01percent to $75.45 by 10:37 PM ET (2:37 AM GMT) and WTI futures inched down 0.04 percent to $72.58. Both Brent and WTI futures remained above the $70 mark.
Crude oil and fuel stockpiles dropped sharply during the past week as refiners in the U.S. Gulf of Mexico and oil facilities offshore have yet to complete their recovery from Hurricane Ida’s impact, the US Energy Information Administration (EIA) said on Wednesday.
The EIA data showed a draw of 6.422 million barrels, much bigger than the 3.544-million-barrel draw in forecasts prepared by Investing.com and the previous week’s 1.529-million-barrel draw.
US production surpasses pre-pandemic levels
Production by US factories, mines and utilities in August surpassed the level seen before the pandemic caused an unprecedented collapse, according to Federal Reserve data released Wednesday.
Industrial production increased 0.4 percent in August, but it could have been 0.3 percentage points higher had it not been for the effects of Hurricane Ida, which caused flooding and destruction in parts of Louisiana and the northeastern United States.
The dollar slumped against major currencies on Wednesday after softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve.
The dollar index, a measure of the greenback's value against six major currencies, has traded between 92.3 and 92.9 over the past week as several Fed officials suggested the U.S. central bank could reduce buying debt securities by the end of the year, even after a weaker-than-expected payrolls report earlier this month.
Gold prices tenuous
Gold’s stay above $1,800 is proving tenuous, at best.
Gold’s bread and butter has been globally easy monetary policies and that is about to moderate, but over the next couple of quarters it could transition to an inflation hedge, but the timing of that will be tricky.
Most-active December gold on New York’s Comex settled down $12.30, or 0.7 percent, at $1,794.80 after moving between $1,808.45 and $1,792.35.
Tatas refute rumours on leadership changes
India's Tata Sons Chairman N Chandrasekaran said on Wednesday that no leadership changes were on the anvil, refuting media reports. The holding firm of the Indian conglomerate was considering adding a chief executive role amid a revamp of its leadership structure, a Bloomberg report had said on Tuesday.
Japan exports in double digits in August
Japan’s exports extended double digit gains in August, led by strong shipments of chip manufacturing equipment, though the pace of growth weakened mainly due to the deepening impact of a COVID-19 resurgence across Asia.
Exports rose 26.2 percent in August compared with the same month a year earlier, the Ministry of Finance said on Thursday, marking the sixth straight month of double-digit growth as strong demand for chip-making equipment offset slowing US and EU-bound shipments of cars.
Cabinet approves PLI scheme for auto
The Union Cabinet of India on September 15 cleared Rs 25,938 crore performance-linked incentive (PLI) scheme for the automobile sector to boost the production of electric and hydrogen fuel cell vehicles.
Government plans to sell 10 percent of Hindustan Copper’s equity through an Offer for Sale. The initial plan is for the sale of 4.83 crore shares or 5 percent of the total equity with a green shoe option to sell another 4.83 crore shares or 5 percent of the total equity. The floor price of Rs 116 per share is at a 6.82 percent discount to Wednesday's closing price.
9 stocks under F&O ban
Nine stocks - Canara Bank, Escorts, Exide Industries, Vodafone Idea, IRCTC, LIC Housing Finance, NALCO, Sun TV Network and Zee Entertainment Network - are under the F&O ban today.