Trends on SGX Nifty indicate a negative opening for the index in India with a 98-points loss.
The Indian stock markets could open lower following largely negative Asian markets today and negative US markets on Tuesday, said Deepak Jasani, Head-Retail, HDFC Securities
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said "the Nifty is expected to open negative, with a gap down of 120 points at 17,920. Since the last two trading sessions Nifty has been facing resistance at its 20 period moving average. Traders should avoid taking long positions till the time Nifty closes above 18,100 with higher than average volumes."
Mohit Nigam, Head - PMS, Hem Securities, said, "The benchmark Indices are expected to open on a negative note as suggested by trends on SGX Nifty. US markets and majority of the European markets closed in red yesterday.
"On the technical front, though Indian markets declined marginally yesterday, outperformance was witnessed in majority of the Indices. We believe the positive trend in the market is intact and investors can witness further upside in the markets. Immediate support and resistance in the markets are 17,850 and 18,200 respectively."
Nifty ended almost flat on November 9 after muted moves. At close the Nifty was down 0.13% or 24.3 points to 18044.2.
Nifty ended the day almost flat in line with most other markets. Nifty crossed the high of the previous day but there was no follow through upmove. A move above 18115-18125 band could lead to more upsides while 17947-17970 is a support band for the Nifty in the near term.
Stocks to watch out for
Stock specific actions can be witnessed in stocks such as as profit-taking and worries over ongoing inflation fueled a broad sell-off (The company reported higher consolidated profit at Rs 3,376.4 crore in Q2FY22 against Rs 3,094.1 crore in Q2FY21), AstraZeneca India (reported a 54.65% decline in its net profit to ₹11.94 crore for the quarter ended 30 September 2021).
Bank of Baroda, Zomato, Affle India, Berger Paints, Glenmark Life Sciences, India Cements, etc.
Asian shares follow Wall Street in early trade
Asian shares followed Wall Street as profit-taking and worries over ongoing inflation fueled a broad sell-off.
Traders await CPI data from the US this evening. The consumer price index is expected to have risen nearly 6% in October, the most in three decades. Asian stock markets were down on Wednesday as surges in oil and Chinese factory prices added to worries that a hot U.S. inflation reading could renew pressure on policymakers to lift interest rates.
US stock end lower on Tuesday
US stock indexes ended lower onTuesday, with the Nasdaq Composite and S&P 500 snapping long win streaks as market benchmarks retreated from record highs. Investors parsed a report on U.S. wholesale inflation and news that industrial conglomerate General Electric was planning on splitting into three separate companies.
In U.S. economic data, the October producer-price index rose 0.6%, in line with expectations, with the pace of wholesale inflation over the past 12 months flat at 8.6%. That is the highest level since the index was reconfigured in 2009, and likely one of the highest readings since the early 1980s. The National Federation of Independent Business said its gauge of small-business confidence slipped by 0.8 points to 98.2 last month, its lowest reading since March.
China consumer inflation in line with expectations
China’s consumer inflation for October came in roughly in line with expectations, according to official data released Wednesday. The consumer price index for October rose 1.5% from last year, against expectations in a Reuters poll for a 1.4% increase. Producer prices, however, rose more than expected. The producer price index for October surged 13.5% from last year, above expectations in a Reuters poll for a 12.4% gain. China's October factory gate prices rose at the fastest pace since 1995.
China Evergrande Group is facing its biggest payment test since signs of a liquidity crisis emerged at the firm five months ago. Investors are waiting to see if the embattled developer makes coupon payments totaling $148.1 million for three dollar bonds before the end of 30-day grace periods Wednesday.
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