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Updated on: Monday, October 25, 2021, 08:57 AM IST

Trends on SGX Nifty indicate a cautious opening for indices

Trends on SGX Nifty indicate a cautious opening for indices/Representational image of stock market  | AFP PHOTO / Yoshikazu TSUNO

Trends on SGX Nifty indicate a cautious opening for indices/Representational image of stock market | AFP PHOTO / Yoshikazu TSUNO

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Trends on SGX Nifty indicate a cautious opening for the index in India with a 11-points gain.

Indian markets could open flat to mildly higher following mixed Asian markets today, and mixed US markets on Friday, said Deepak Jasani, Head-Retail, HDFC Securities.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, "Nifty is expected to open flat to positive at 18130 , up by 15 points. Nifty has immediate support in 18100- 18000 range and resistance at 18300-18390 range. Nifty is unable to sustain at higher levels and is facing resistance. Traders are suggested to avoid taking long position till we get strong bullish confirmation."

Dow Jones closes at record high on Friday

The Dow Jones Industrial Average closed at a record high Friday, its first such milestone since August, with US stock benchmarks booking weekly gains on optimism surrounding third-quarter earnings, even as shares of technology companies fell under pressure.

Comments from Federal Reserve Chairman Jerome Powell, which could be read as hawkish, also appeared to keep stock gains in check. Fed Chairman Jerome Powell said the U.S. labor market might reach “maximum employment” next year, possibly paving the way for interest rate hikes.

Nifty closes lower on Friday (October 22)

Nifty closed lower for the fourth consecutive session on October 22 due to relentless profit taking after mixed corporate results. At close Nifty was down 0.35 percent or 63.2 points at 18114.9.

Advance decline ratio plunged to well below 1:1 on most days in the past week. This showed the relentless profit taking by market participants. Nifty ended the week with a loss of 1.22%. On weekly charts, Nifty has formed a bearish Dark cloud cover. This denotes some more fall early this week. Disappointment coming out of Q2 corporate results due to margin pressure is not helping matters. Q3 is traditionally good but this time commodity price inflation and supply side issues can tamper the results expectations even for that quarter. These factors may not help a sharp/lasting recovery in the markets in the near term. On falls, 17948 could be a good support

Russia central bank hikes interest rates

Russia’s central bank increased its key interest rate sharply to 7.5% on Friday, delivering its sixth hike this year in an effort to tame the highest inflation since early 2016, and indicated that more rate rises were still possible.

IHS Markit’s Flash Composite Purchasing Managers’ Index, a good gauge of overall economic health, fell to a six-month low of 54.3 in October from 56.2 in September, mainly led by slower services number. Flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, rebounded to a reading of 57.3 in the first half of this month from 55.0 in September, led mainly by a better services number

The US federal budget deficit shrank in September to $62 billion from $125 billion in the year-earlier period and was the smallest budget gap since January 2020.

Asians stock fall in early trade

Most Asian stocks fell early Monday as traders weighed inflation risks, a COVID-19 outbreak in China and earnings prospects for major technology firms. Turkey’s lira slid to a record low amid a diplomatic spat.

In the latest announcement to worry some investors, the top decision-making body of the Chinese parliament said on Saturday it will roll out a pilot real estate tax in some regions. Shares in China Evergrande Group shot up 4% on Monday after the embattled property developer announced plans to prioritise growth of its electric vehicles business over its core real estate operations.

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Published on: Monday, October 25, 2021, 08:57 AM IST
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