Trends on SGX Nifty indicate a gap-up opening for the index with a 145 points gains. The Nifty futures were trading at 15,759 on the Singaporean Exchange.
Gaurav Udani, CEO & Founder, ThincRedBlu securities., said, "After falling over 300 points in the last two trading sessions, Nifty is expected to open with a gap-up of about 120 points at 15750, traders are advised not to initiate longs at the opening, let the markets settle and the enter longs if markets show further strength. 15,750 and 15,830 will act as key resistance levels while 15,580 will act as strong support."
Indian markets could open higher, in line with gains made by the Asian and US markets over the past two days. Nifty could remain in the 15,520-15,825 band for the next 1-2 sessions. After the three day fall, a bounce is due whose sustainability will be keenly watched, said Deepak Jasani, Head of Retail Research, HDFC Securities. Patchy monsoons in India and subdued Q1FY22 corporate results raised fresh concerns on the economic growth and market valuation, he said.
With the reporting of robust corporate earnings, the US markets advanced and the Dow Jones rose by 0.83 percent, the S&P 500 up by 0.82 percent and the Nasdaq Composite up by 0.92 percent. The Asian markets surged early Thursday. European Central Bank meeting and policy announcement later today will be closely tracked. Government is considering selling its 7.93% stake in ITC, the nation’s top cigarette maker, to meet its disinvestment target for the year. Immediate support and resistance for Nifty 50 are 15,550 and 15,850 respectively, said Mohit Nigam, Head-PMS, Hem Securities.
Second-quarter reporting season has hit full-stride, with 56 of the companies in the S&P 500 having posted results. Of those, 91 percent have beaten consensus, according to Refinitiv. Analysts now see annual S&P earnings growth of 72.9 percent for the April-June period, a significant improvement over the 54 percent growth seen at the beginning of the quarter.
Asian markets trade higher
Shares in Asia-Pacific were higher in Thursday morning trade with markets in Japan closed for a holiday. Hong Kong's Hang Seng index was amongst the biggest gainers regionally, rising 1.19 percent in early trade. The Taiex in Taiwan also gained 1.01 percent.
Wall Street stock posted their second straight daily gain on Wednesday with robust corporate earnings and renewed optimism about the US economic recovery fueling a risk-on rally.
The Dow Jones Industrial Average rose 286.01 points or 0.83 percent to 34,798, the S&P 500 gained 35.63 points or 0.82 percent to 4,358.69 and the Nasdaq Composite added 133.08 points or 0.92 percent to 14,631.95.
ADB downgrades India's economic growth
The Asian Development Bank (ADB) has downgraded India's economic growth forecast for the current financial year to 10 percent on Tuesday, from 11 percent projected earlier this year, mainly on account of the adverse impact of the coronavirus pandemic.
Glenmark Life Sciences IPO
Glenmark Life Sciences, the subsidiary of major Glenmark Pharmaceuticals, will open its initial public offering for subscription on July 27. This is the 29th public offering to hit Dalal Street in the current year 2021. The price band for the offer, which will close on July 29, has been fixed at Rs 695-720 per equity share, as per reports. The IPO comprises a fresh issue of Rs 1,060 crore, and an offer for sale of 63 lakh equity shares by promoter Glenmark Pharmaceuticals. The fund raising comes to Rs 1,513.6 crore at a higher price band.
The company will utilise fresh issue proceeds for payment of outstanding purchase consideration to the promoter for the spin-off of the API business.
Hindustan Unilever, UltraTech Cement, Bajaj Auto, Agro Tech Foods, Bajaj Holdings & Investment, Biocon, Can Fin HOmes, Chennai Petroleum Corporation, CSB Bank, Heidelbergcement India, Hindustan Zinc, ICICI Lombard General Insurance Company, Indian Energy Exchange, IIFL Securities, IndiaMart InterMESH, India Pesticides, Lloyds Steels Industries, Bank of Maharashtra, Mahindra EPC Irrigation, Mphasis, Persistent Systems, Music Broadcast, Shiva Cement, South Indian Bank, Sterlite Technologies, and Wockhardt.
Stocks under F&O ban on NSE
Six stocks--Cadila Healthcare, Canara Bank, Indiabulls Housing Finance, NALCO, NMDC, and Sun TV Network--are under the F&O ban for July 22. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.