Trends on the SGX Nifty indicate a positive opening for the index in India with a 75-point gain. The Nifty futures were trading at 18,208 on the Singapore Exchange around 7:30 AM.
Indian markets could open higher following largely positive Asian markets today and positive US markets on Friday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
"The Nifty is expected to open around 18,180 , up by 80 points. Nifty has resistance in 18,200 and 18,250 range and support in 18,050 and 17,950 range. Traders can consider buy on dips with strict stoploss loss," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Nifty broke a 3 day losing streak on Nov 12 and ended smartly in the positive. At close Nifty was up 1.28 percent or 229 points at 18102.7. Indian markets were one of the top performers in the Asian region.
Nifty rose smartly on November 12 after a three-day fall. However the broader market is lagging going by the negative advance decline ratio and low volumes. Nifty has closed just short of the resistance of 18,113. A move above this could take it to the 18,192-18,296 band.
US stock indices end higher on Friday
USstock indexes ended higher Friday, with the Dow enjoying a bump from enthusiasm about a breakup of blue-chip component Johnson & Johnson, but the main benchmarks still saw losses for the week. Stocks have been buffeted by inflation fears, with the government debt yields rising, but overall investors are betting that corporate profits will remain healthy despite supply-chain challenges and a surge in consumer demand in the aftermath of the COVID-19 pandemic.
University of Michigan’s gauge of consumer sentiment slid to 66.8 in November, from a final October reading of 71.7, marking the lowest read since 2011. The University of Michigan reported that inflation is a major driver of consumers’ sour mood, and that “rising prices for homes, vehicles and [other long lasting, durable goods] was reported more frequently [in November] than any other time in more than half a century.”
In other economic reports, some 4.4 million people quit their jobs in September, government data from the Job Openings and Labor Turnover Survey, or JOLTS, revealed on Friday, marking a record high for the third month in a row. The quits equate to 3 percent of the labor force leaving their jobs in that month, which is also the highest level since the government began keeping track in 2000.
Goldman Sachs downgrades Indian equities by one notch
Goldman Sachs has downgraded Indian equities by one notch to 'market weight', citing a blistering run this year that has made them the best performing emerging Asian market. Indian stocks have rallied nearly 28% in 2021 on the back of ultra-easy monetary policy, rising vaccinations and the economic reopening, compared with a 0.76 percent drop in the MSCI Emerging Market index.
As the low base effect slowly wears off, industrial production in India continued to stabilise in September, expanding by 3 percent year-on-year (YoY). While it was lower than the 11.9 percent rise in August, this was due to the low base effect ending by August.
Retail inflation up
India’s retail inflation rate, which is measured by the Consumer Price Index (CPI), rose to 4.48 percent in the month of October 2021. There was a marginal increase in retail inflation in October due to an uptick in food prices, government data showed. The CPI-based inflation in September 2021 was at 4.35 percent and in October 2020 it was 7.61 percent.
EU industrial production falls
The European Union's statistics office Eurostat said industrial production in the 19 countries sharing the euro fell 0.2 percent month-on-month in September for a 5.2 percent year-on-year increase. Economists polled by Reuters had forecast a 0.5 percent decline month-on-month and a 4.1% percent increase year-on-year in September.
Asian shares edge cautiously
Asian shares edged cautiously higher on Monday. China’s retail sales rose more than expected in October. October retail sales grew by 4.9 percent from a year ago, beating a Reuters’ poll forecasting 3.5 percent growth and vs 4.4 percent in September. Industrial production also beat expectations, up by 3.5 percent year-on-year in October vs 3.1 percent in September and 3 percent expected. Reuters had predicted 3 percent growth. From January to October, fixed asset investment rose by 6.1 percent from a year ago, slightly less than the 6.2 percent rise projected in a Reuters’ poll and 7.3 percent rise in Jan to September.
China's coal output at highest in Ocotber since March 2015
China’s October coal output rose to the highest since at least March 2015, after Beijing approved a raft of coal mine expansions to tame record prices and boost supply.
China's October new home prices fell 0.2 percent month-on-month, the biggest decline since February 2015, amid continued demand weakness across the country with authorities holding the line on purchase restrictions to deter speculators.
Japan's economy down
Japan’s economy shrank an annualised 3.0 percent in July-September after a revised 1.5 percent gain in the first quarter as global supply disruptions and fresh COVID-19 cases hit business and consumer spending, raising challenges for the new government's growth plans.
Eight stocks under F&O ban
Eight stocks—Bank of Baroda, BHEL, Escorts, Indiabulls Housing Finance, NALCO, Punjab National Bank, SAIL and Sun TV Network—are under the F&O ban.
