Trends on SGX Nifty indicate a gap-down opening for Indian indices on April 22. Indian markets could open lower in line with negative Asian markets today and lower US markets on Thursday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Nifty rose for the second consecutive day on April 21, aided by positive global cues and lower institutional selling. At close Nifty was up 1.49 percent or 256.1 points at 17392.2. In the process Nifty was the best performing index in the region.
Nifty rose for the second consecutive session with an upgap. It is now close to filling the downgap of 17,457 made on April 18 which could be a resistance in the near term post which 17,560 will act as such. On falls 17,174-17,238 band could provide support, said Jasani.
Asian stocks slide
Asian stocks tumbled on Friday after Federal Reserve Chair Jerome Powell toughened his stance on fighting inflation, spurring traders to brace for more aggressive monetary-policy tightening, Reuters said.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 percent in morning trade, its sharpest decline in six weeks. Pulling it lower was a 1.6 percent loss for Australia's resource-heavy index, a 1.1 percent drop in Hong Kong stocks and a 0.3 percent retreat for blue chips in mainland China .
Japan's Nikkei lost about 2 percent. Overnight, U.S. Federal Reserve Chairman Jerome Powell said a half-point interest rate increase will be "on the table" when the Fed meets in May, adding it would be appropriate to "be moving a little more quickly."
US stocks suffer sharp losses
US stocks swung to sharp losses Thursday, losing a grip on earlier gains, as bond yields rose and energy, communications and technology stocks led the way lower.
Declines intensified after Fed Chair Powell added his support to “front-end loading” of interest rate increases, including with a potential 50 basis point hike in May.
The Dow Jones Industrial Average ended down 1.05 percent, while the S&P 500 lost 1.48 percent and the Nasdaq Composite dropped 2.07 percent. barrel.
The euro and German bond yields rose after multiple ECB officials suggested the first eurozone rate hike of the cycle could come as early as July. The benchmark 10-year US Treasury yield rose about 8.1 basis points to 2.917 percent, the highest since December 4, 2018.
Crude prices down
Oil prices wobbled on Friday as concerns about supply due to a potential European Union ban on Russian oil were offset by demand worries. Brent crude fell 1percent to $107.17 per barrel, while US crude fell 1 percent to $102.68 a barrel.
Results on April 22, 23
Aditya Birla Money, Hindustan Zinc, Sundram Fasteners, Tata Metaliks, Tejas Networks, MMTC, Wendt (India), Bhakti Gems and Jewellery, Eiko Lifesciences, Jhandewalas Foods, Khaitan Chemicals & Fertilizers, Quest Capital Markets, RS Software India, and Sharad Fibres & Yarn Processors will release quarterly earnings on April 22.
ICICI Bank, Bhansali Engineering Polymers, and Indag Rubber will release quarterly earnings on April 23.
(With inputs from Reuters)
