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Updated on: Monday, August 16, 2021, 09:27 AM IST

Trends on SGX Nifty indicate a negative opening for stock market indices

  AFP PHOTO / WANG ZHAO |

AFP PHOTO / WANG ZHAO |

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Trends on SGX Nifty indicate a negative opening for the index in India with a 36 points loss. The Nifty futures were trading at 16,492 on the Singaporean Exchange around 7.30 AM.

Indian markets could open mildly lower, in line with negative Asian markets today and flat US markets on Friday, said Deepak Jasani, Head of Retail Research, HDFC Securities.

The Dow Industrial and S&P 500 edged up to closing records on Friday and notched a second straight week of gains, buoyed by a climb in Walt Disney shares, but a sharp drop in consumer sentiment kept gains in check.

The Dow Jones Industrial Average rose 15.53 points, or 0.04 percent, to 35,515.38, the S&P 500 gained 7.17 points, or 0.16 percent,, to 4,468 and the Nasdaq Composite added 6.64 points, or 0.04 percent,, to 14,822.90.

"Nifty is expected to open down by 40 points at 16480. It has strong support at 16,420 and 16,380 levels. On the higher side Nifty should see 16,600 and 16,700 in the coming few days. The trend in Nifty is bullish and buying on dips with strict stop-loss is suggested", said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.

Nifty opened gap up on August13 and continued to move higher to close almost at the intra day high. In the process it has made new all time highs. Nifty was the top performer in the Asian region. Encouraging data points overnight helped as did the hopes of an early relaxation of the balance COVID curbs. At close, Nifty was up 1.01 percent or 164.7 points to 16,529 Sensex closed above 55,000 for the first-time ever.

Nifty gained for the second consecutive week, gaining 1.79 percent over the week. Companies who have come out with encouraging results over the last one or two days are seeing an uptick in their prices. Upward momentum in the indices continues, though with no unusually large volumes. Nifty could remain in the 16,440-16,790 band for the coming week.

Mohit Nigam, Head, Hem Securities said, "the investor community is also starting to be a bit jittery due to the fall of a major portion of Afghanistan to Taliban and the China retail sales and industrial output numbers. Among the companies listed results over the end of the last week ONGC revenues were up by 8.6 percent to 23,021.64 crores due to crude realization jumped 13 percent to $65.59 per barrel.

"The week will be filled with many new listings of Devyani International limited, Exxaro Tiles limited, Krsnaa diagnostics limited and Windlas biotech limited. Vodafone Idea results a net loss for the Q1 FY22 as the revenues fell due to falling customer base. The much-awaited electric scooter from Ola priced at 99,999 has started to roll-out from the mega factory in Chennai as India celebrated its 75th Independence day. The markets look strong and any significant dip is a good opportunity to invest in quality stocks for the long-term," Nigam added.

Asian markets open on cautious note

Asian share markets made a cautious start to the week on Monday ahead of a raft of Chinese data that could confirm a slowdown in the giant economy, as much of the world races to stem the spread of the Delta variant of COVID-19 with vaccinations.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade, having hit its lows for the year last month. Japan’s Nikkei fell 1.2 percent, though economic growth pipped forecasts for the June quarter.

Consumer sentiment index falls

The University of Michigan consumer-sentiment index fell sharply to 70.2 in August from 81.2 in prior month, marking the lowest level since December 2011, and momentarily knocking the wind of the market’s bullish sails.

Crude oil declines

After soaring in the first half, crude oil’s rally has started to fray since mid-July. The spread of delta, including in key consumer China, has undermined the outlook for consumption as restrictions on mobility are reintroduced. At the same time, OPEC+ has proceeded with plans to gradually increase production, rolling back the supply curbs it imposed in the early days of the pandemic.

KFC & Pizza Hut operator Devyani International is expected to make a stellar debut on bourses on August 16 with most analysts expecting more than 50 percent listing gains.

Dollar under pressure

The US dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.57 percent to 92.51.The dollar is on course for weekly loss Friday, pressured by a sharp decline in yields, but bets on the greenback have swelled to more than five-month highs as investors believe that the Federal Reserve is on course to rein in lose monetary policy measures by year-end.

The US dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.57 percent to 92.51.

The value of the net long dollar position rose to $3.08 billion in the week ended August10, from $2.11 billion the prior week, according to data from CFTC and Reuters. That was the highest level since early March.

Devyani International debut on bourses today

KFC & Pizza Hut operator Devyani International is expected to make a stellar debut on bourses on August 16 with most analysts expecting more than 50 percent listing gains.

The Rs 1,838-crore public issue was oversubscribed by 116.71 times during April 4-6. Qualified institutional investors' reserved portion was subscribed 95.25 times, non-institutional investors part was subscribed 213.06 times, and the portion set aside for retail investors witnessed 39.52 times subscription. Employees' portion was subscribed 4.7 times.

Eight stocks under F&O ban

Cadila Healthcare, Canara Bank, Indiabulls Housing Finance, NALCO, Punjab National Bank, RBL Bank, SAIL and Sun TV Network - are under the F&O ban

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Published on: Monday, August 16, 2021, 09:04 AM IST
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