Trends on SGX Nifty indicate a cautious opening for the index in India. Indian markets could open flat to mildly lower, in line with mildly negative Asian markets today and despite sharply negative US markets on Monday.
"After Monday's sell-off of over 1 percent, the Nifty is expected to open flat to negative at 15730. Key levels to look out for Nifty is 15,600 as support and 15,860 as resistance. Traders are advised to book profit at every rise and exit all longs if 15,600 is broken. Fresh longs should be considered only if Nifty closes above 16000 levels," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "The Nifty fell on July 19 after a weak opening following negative cues from Asian markets. Fall in Nifty on July 19 was the highest in points and percent basis since April 30.Nifty has fallen sharply with a downgap and the next support is 0.8 percent away. Retail investors may review their portfolios and start raising some cash / book profits partly. In case the Nifty settles and starts to rise again they could find another set of stocks to rise on..
Mohit Nigam, Head, PMS - Hem Securities, said: "Benchmark Indices are expected to open on a weak note on account of global cues. Due to fear of another wave of the COVID-19 pandemic, European Stocks closed in red. Dow Jones slipped by 2.09 percent while Nasdaq Composite declined 1 percent and SGX Nifty declined 0.3 percent. Due to sell off in the US and Asian markets declined. PE/ Venture funds investment declined by 22 percent in June. Stock-specific actions may be witnessed in stocks such as ACC (Net profit up two-fold to Rs 569 crore) , Jindal Stainless (sign pact with Tata Steel Mining), Bajaj Finance, HCL Tech and more. . Immediate support and resistance for Nifty 50 are 15,650 and 15,850 respectively."
Asian stocks down
Asian stocks were down early on Tuesday as growing fears the spreading Delta variant of the coronavirus would harm the global economic recovery sent riskier assets, including oil, skidding sharply.
The entire Asian markets is trading at negative cues: Nikkei is trading at 27,564.52, losing 88.22 points, Hang Seng at 27,318.94, losing 170.84 points from its gains.
The Dow Jones Industrial Average fell 725,81 points or 2.09 percent to 33,962.04, the S&P 500 lost 68.67 points or 1.59 percent to 4,258.49 and the Nasdaq Composite 152.25 points or 1.06 percent to 14,274.98.
US stocks closed sharply lower Monday (its biggest one-day fall since October), joining the sell-off in global equities, as concerns grew about the spread of the delta variant of the coronavirus that causes COVID-19, and as tensions ratcheted up between the US and China. The Biden administration on Monday blamed China for a hack of Microsoft Exchange email server software that compromised tens of thousands of computers around the world earlier this year. Democratic senators also were expected to make public on Monday a plan to raise $14 billion annually by imposing taxes on China and other countries not significantly reducing emissions that warm the planet.
Oil future down
US Crude-oil futures settled below $67 a barrel on Monday (down 7.39 percent to $66.50 per barrel), their biggest daily percentage drop since March, following a weekend deal by the OPEC+ group to boost oil production.
The yield on the 10-year Treasury note was down 11.9 basis points, dipping below 1.18 percent at its lows and deepening its decline to levels not seen since February.
Economists at Bank of America downgraded their forecast for U.S. economic growth this year to 6.5 percent, from 7 percent previously.
On Tuesday, China kept unchanged its benchmark lending rate for corporate and household loans — the one-year Loan Prime Rate (LPR) held steady at 3.85 percent while the five-year LPR was also left at 4.65 percent.
Economic growth in FY22 to be around 11%: CEA
Notwithstanding the second wave of COVID-19, Chief Economic Adviser (CEA) K V Subramanian on Monday expressed hope that economic growth during the current financial year would be around 11 percent as projected in the latest Economic Survey.
The economy will witness 6.5 07 percent growth FY23 onwards, to accelerate further, said CEA Krishnamurthy Subramanian.
The Economic Survey 2020-21, released in January this year, had projected GDP growth of 11 percent during the current financial year ending March 2022.
"We will grow at a high growth rate this year. This year growth will be from the lower base but we anticipate 6.5-7 per cent growth next year FY'23 and from thereon, growth accelerating even further," Subramanian said.
Quarterly results today
Bajaj Finance, Asian Paints, Arihant Superstructures, CRISIL, DCM Shriram, ICICI Prudential Life Insurance Company, ICICI Securities, India Tourism Development Corporaton, JSW Ispat Special Products, Jubilant Ingrevia, Kohinoor Foods, Mangalam Organics, Moschip Technologies, Newgen Software Technologies, Reliance Industrial Infrastructure, Rane (Madras), Shyam Metalics and Energy, and Syngene International will release their quarterly earnings today.