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Updated on: Thursday, November 25, 2021, 09:14 AM IST

Trends on SGX Nifty indicate negative opening for stock market indices

Indian markets could open flat in line with rangebound Asian markets today and  largely unchanged US markets on Wednesday
/Representational image of stock market  | AFP PHOTO / Yoshikazu TSUNO

Indian markets could open flat in line with rangebound Asian markets today and largely unchanged US markets on Wednesday /Representational image of stock market | AFP PHOTO / Yoshikazu TSUNO

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Benchmark Indices are expected to open on a negative note as suggested by trends on SGX Nifty.

Indian markets could open flat in line with rangebound Asian markets today and largely unchanged US markets on Wednesday, said Deepak Jasani, Head-Retail, HDFC Research.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "The Nifty is expected to open flat to negative at 17,385, down by 20 points. Nifty may see support in 17,250-17,300 range and resistance in 17,500-17,550 range. High risk traders can consider buying with a strict stoploss of 17,200.'

Mohit Nigam, Head-PMS, Hem Securities said, "On the technical front, the key resistance levels for Nifty50 are 17,560 followed by 17,700 and on the downside 17,310 followed by 17,210 can act as strong support. Key resistance and support for Bank Nifty are 37,800 and 37,150 respectively."

Nifty gave up the early gains and ended in the negative on November 24 after a volatile trade. At close Nifty was down 0.50 percent or 88.3 points at 17415. Nifty fell for the fifth day out of the past 6 sessions.

Nifty reversed the gains of the previous day displaying that the bounce so far is feeble. Advance decline ratio however ended in the positive. Nifty turned back from 17,600 levels. Now 17,280 could be a crucial support, said Jasani.

US stock close higher on Wednesday

US stocks closed mostly higher Wednesday after investors decided to buy the dip before taking a break for Thanksgiving. The uptick came from economic data forcing the market to reflect higher expectations that the Federal Reserve will reduce support from both the market and the economy.

The release of minutes of the Federal Reserve’s November meeting showed some officials favored a faster pace of tapering of the central bank’s monthly bond-buying program. U.S. markets will be closed on Thursday for Thanksgiving and will end early on the Friday after the holiday.

Personal spending also rose 1.3 percent month-over-month in October, higher than the expected 1 percent rise. Durable goods orders fell 0.5 percent month-over-month in October, worse than the consensus economist forecast of a 0.3 percent rise. PCE (Personal Consumption expenditure) rose 0.6 percent over month in October and 5 percent over the year. The Core Personal Consumption Expenditures Index, a key inflation measure the Fed tracks, rose 4.1 percent year-over-year in October, in line with estimates and higher than the previous reading of 3.7 percent.

US jobless claims at lowest level

Jobless claims fell to 199,000, the lowest level for initial claims since Nov. 15, 1969, according to the Labor Department, and far better than the expected 260,000. The drop extends a trend of strength in the labor market. The pace of economic growth in the third quarter was raised to a 2.1% annualized rate versus an initial estimate of 2 percent.

The US trade deficit in goods narrowed sharply in October. The University of Michigan’s gauge of consumer sentiment rebounded to a final November reading of 67.4 from an initial reading of 66.8, but below the October reading of 71.7.

Biden administration adds more Chinese firms to trade blacklist

The Biden administration added a dozen Chinese companies to its trade blacklist on Wednesday, citing national security as well as foreign policy concerns.

The Bank of Korea raised its policy rate by 25 basis points to 1 percent, a move that was largely expected by analysts in a Reuters poll.

Asian stocks trade mixed

Asian markets were mixed in trade on Thursday as traders weighed Federal Reserve minutes that flagged the risk of a faster reduction in stimulus to fight elevated inflation.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.18 percent to a six-week low, having posted a small decline in each of the past six trading sessions, Reuters said. Japan's Nikkei rose 0.8 percent. There were mild declines across the board. Australia shed 0.1 percent, Hong Kong lost 0.35 percent, and Chinese blue chips shed 0.3 percent.

European markets closed in red where FTSE closed 0.27 percent higher.

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RIL announces transfer of Gasification undertaking

On November 14, the board of Reliance Industries announced the transfer of Gasification Undertaking into a wholly-owned subsidiary.

FII data

On November 24, 2021, Foreign institutional investors have done net selling worth Rs 5,122.65 crore, while domestic institutional investors have done net buying worth Rs 3,809.62 crore in the Indian equity market.

GDP to grow 7.8% in Q2, 9.4% in FY22

Official data print on the GDP will show a 7.8 per cent expansion on a year-on-year basis for the September 2021 quarter, according to a report. Real GDP will grow 9.4 per cent in FY22 and decelerate to 7.5 per cent for FY23 as the base effects result in the higher growth in the ongoing fiscal wear-off, according to the report by economists at HDFC Bank released on Wednesday.

In FY21, the GDP had contracted 7.3 per cent due to the pandemic. For FY22, the RBI expects GDP to clock a growth of 9.5 per cent, which will slow to 7.8 per cent in FY23.

The GDP had expanded by over 20 per cent for the first quarter on the lower base. The official data for the second quarter is set to be released on November 30.

Two stocks under F&O ban

Two stocks – Escorts, and Indiabulls Housing Finance – are under the F&O ban for November 25.

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Published on: Thursday, November 25, 2021, 08:55 AM IST
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