Trends on SGX Nifty indicate a cautious opening for the index in India. Indian markets could open flat to mildly higher in line with mildly positive Asian markets today. US markets were shut on Monday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Mohit Nigam, Head - PMS, Hem Securities, said, the "benchmark Indices are expected to open flat as trends on SGX Nifty with a loss of 4 points indicate a cautious opening. Driven by positive global cues and buying interest in some Auto and Metal stocks, market closed at three month high amid volatility on Monday, forming bullish candle on the daily charts. Asia-Pacific markets were trading mostly higher on Tuesday while US markets remained shut for a public holiday of Martin Luther King Jr Day.
"Global investors remained their attention on the prospect of US Interest rate hikes in the next few months. On the technical front, the key resistance levels for Nifty50 are 18340 followed by 18380 and on the downside 18250 followed by 18190 can act as strong support. Key resistance and support levels for Bank Nifty are 38500 and 38140 respectively," Nigam added.
Nifty rose for the sixth out of the past seven sessions on Jan 17. At close, Nifty was up 0.29 percent or 52.3 points at 18308.1.
Nifty has risen after a day of pause and the advance decline ratio also remains healthy. However the day on day gain as well as the intra day range remains small. 18164-18342 seems to be the range for the Nifty in the near term.
Asian shares trade high
Asia's share markets were mostly higher on Tuesday even as global investor attention remains fixed on the prospect of US interest rate hikes in the next few months, after two years of unprecedented pandemic-induced policy easing. Bank of Japan is scheduled to meet today for deliberating on interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4% percent, after the U.S market was closed overnight for the Martin Luther King Jr. holiday. The index is up 1.1 percent so far this month. Australian shares were up 0.29 percent, while in China the blue chip CSI300 Index rose 0.33 percent in early trading.
Hong Kong's Hang Seng Index was up by 0.61percent. Japan's Nikkei stock index was trading 0.63percent higher ahead of the Bank of Japan's decision due between 0230-0500 GMT.
Stocks to watch out for
Market might be volatile as Bajaj Finance, L&T Technology Services, ICICI Securities, Den Networks, EKI Energy Services, Just Dial, Jyoti Structures, Network18 Media & Investments, Shakti Pumps (India),TV18 Broadcast and some others will release quarterly earnings on January 18 said Nigam.
Global stocks move higher on Monday
Global stocks moved higher Monday in what was a quiet trading session, with US markets closed in observance of the Martin Luther King Jr. Day holiday.
European shares recovered from Friday's losses on Monday supported by action from the Chinese central bank to support a slowing economy and as investors focused on company earnings and US Federal Reserve policymakers entered a quiet period ahead of their meeting next week. The US Federal Reserve meets on Jan. 25-26 and investors expect a cycle of rate hikes to begin in March.
US Fed to meet on January 25-26
US Federal Reserve is due to meet January 25-26 and while it is not expected to shift rates then, a growing number of investors think March will be the start of a tightening cycle, Reuters said. Rate rises are generally seen as negative for riskier assets such as equities.
Sebi overhauls preferential allotment rules
Capital markets regulator Sebi has relaxed pricing norms and lock-in requirements to make it easier for companies to raise funds through preferential allotment of shares. Also, the regulator has allowed pledging of shares allotted to promoter or promoter group under preferential issue during the lock-in period, according to a notification.
In addition, Sebi has said any preferential issue resulting in a change in control or allotment of more than a 5 percent stake will require a valuation report from a registered valuer.
Moreover, any preferential issue allotment resulting in a change in control will be required to provide a reasoned recommendation from a committee of independent directors along with their comments on all aspects of preferential issuance, including pricing.
Economic activity remains strong despite third wave: RBI
India's overall economic activity remains strong despite facing headwinds from a rapid surge in Omicron infections, the Reserve Bank of India (RBI) said in its bulletin.
"Nonetheless, amidst upbeat consumer and business confidence and an uptick in bank credit, aggregate demand conditions stay resilient, while on the supply front, rabi sowing has exceeded last year’s level and the normal acreage.," RBI said.
Results today
Bajaj Finance, ICICI Prudential Life Insurance Company, L&T Technology Services, ICICI Securities, Tata Elxsi, Anup Engineering, DCM Shriram, Den Networks, EKI Energy Services, Just Dial, Jyoti Structures, Network18 Media & Investments, Newgen Software Technologies, Ramkrishna Forgings, Shree Ganesh Remedies, Shakti Pumps (India), Star Housing Finance, Trident, and TV18 Broadcast.
Stocks under F&O ban
Five stocks – Escorts, Granules India, Indiabulls Housing Finance, Vodafone Idea, and SAIL – are under the F&O ban on the NSE today.
(With inputs from Reuters and agencies)
