Trends on SGX Nifty indicate a positive opening for the index in India with a 34-points gain. The Nifty futures were trading at 17,849 on the Singaporean Exchange around 07:30 AM.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said "The Nifty is expected to open positive at 17870, up by 40 points. Since the last few trading sessions Nifty has been taking resistance in 17750-17900 range and support in 17580-17620 range. Traders can consider fresh buying with strict stoploss either on dips or when Nifty closes above 17950 levels."-Mr. Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Indian markets could open mildly higher, in line with positive Asian markets today and higher US markets on Thursday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Mohit Nigam, Head - PMS, Hem Securities said, "The market can be seen in an indecisive zone as RBI is supposed to announce its monetary policy decision. Moody’s also changed India’s sovereign credit rating on October 5th from negative to stable hence we can expect some good decisions today from RBI and a faster and healthier growth of all the sectors and economy as a whole. Tata Consultancy Services will also announce its Q2FY22 results today and we are quite optimistic that this result season is going to be good.
"On technical front, 17,920 level is a good resistance at the moment but any move above 17,920 can push Nifty to the level of 18,100. On the downside, 17,620 is a strong support for Nifty today," said Nigam.
The Nifty rebounded on October 7 after the sell-off seen on the previous day. At close, Nifty was up 0.82 percent or 144.3 points at 17,790.
Nifty formed a doji on October 7 which is appearing within the high low range of the previous day. Hence this pattern does not have any predictive ability. A breach of Thursday’s high i.e.17,858 could lead to further upward move in the markets. 17,641 happens to be the support for the Nifty in the near term, said Jasani.
US market close with gains
World equity markets rebounded on October 7 after United States Senate leaders moved to avert a US debt default, while a global easing in energy prices tempered deepening fears of “stagflation.”
The Dow Jones Industrial Average gained 0.98 percent, the S&P 500 rose 0.83 percent and the Nasdaq Composite moved up 1.05 percent.
Asian shares up
Asian shares rose on October 8 as Chinese shares returned from a one week holiday upbeat, tracking a global rally, while investors also eyed key US jobs data for any fresh insight into the timing of Federal Reserve tapering.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, after rallying 2.1 percent the day before, its biggest daily gain since August. Japan's Nikkei index advanced 1.8 percent.
RBI MPC likely to keep repo rate steady at 4%
The RBI monetary policy committee (MPC) is more likely to vote for holding the policy repo rate steady at 4 percent, notwithstanding rising inflationary pressures in the economy and the depreciation of the rupee.
The MPC is likely to remain on a pause mode on Friday as it awaits more cues from the growth-inflation front. The general consensus among economists is that the stance will remain ‘accommodative’.
Deepak Jasani, Head-Retail Research, HDFC Securities said, "The MPC is likely to remain on a pause mode on Friday as it awaits more cues from the growth-inflation front. The general consensus among economists is that the stance will remain ‘accommodative’."
China's services activity returns to growth in September
Activity in China’s services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded, a private-sector survey showed on October 8, offering some support to a slowing economy.
The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 53.4 from 46.7 in August, pulling away from the lowest level seen since the height of the pandemic last year. The 50-point mark separates growth from contraction on a monthly basis.
US unemployment claims decline
The number of Americans applying for unemployment benefits fell last week, another sign that the US job market and economy continue their steady recovery from last year's coronavirus recession.
Unemployment claims fell by 38,000 to 326,000, the first drop in four weeks, the Labor Department said on October 7. Since surpassing 900,000 in early January, the weekly applications, a proxy for layoffs, had fallen more or less steadily all year. Still, they remain elevated from pre-pandemic levels: Before COVID-19 hammered the US economy in March 2020, weekly claims were consistently coming in at around 220,000.
Energy crisis in Europe
Russian President Vladimir Putin’s offer of help to “stabilize” the natural-gas market in Europe—where prices have surged around 500 percent this year—has calmed worries of an energy crisis in the region and helped cool commodity prices.
Dollar inches up
The U.S. Dollar Index Futures that tracks the greenback against a basket of other currencies inched up 0.01 percent to 4.233 by 10:37 PM ET (2:37 AM GMT).
The USD/JPY pair was up 0.25 percent to 111.87. Japanese data released earlier in the day showed that household spending contracted by a higher-than-expected 3% year-on-year and 3.9 percent month-on-month in August. The adjusted current accountwas at JPY1.04 trillion ($9.33 billion) while the current account was at JPY 1.666 trillion.
The AUD/USD pair inched up 0.06 percent to 0.7316 and the NZD/USD pair was up 0.34 percent to 0.6945.The USD/CNY pair inched up 0.08% percent to 6.4502.
China’s Caixin services purchasing managers index for September, released earlier in the day, was 53.4.The GBP/USD pair inched down 0.01 percent to 1.3615.
MF most attractive tool of investments during pandemic: Survey
Mutual funds remain the most attractive tool of investment during COVID-19 followed by equities as returns are healthy in this asset class, according to a survey by Financial advisory firm Findoc Group.
The survey was conducted among more than 10,000 existing customers of Findoc Group between July 27 and September 4.
Fitch cuts India economic growth forecast
Fitch Ratings has cut India's economic growth forecast to 8.7 percent for the current fiscal but raised GDP growth projection for FY23 to 10 percent, saying the second COVID-19 wave delayed rather than derail the economic recovery.
In its APAC Sovereign Credit Overview, Fitch Ratings said India's 'BBB-/Negative' sovereign rating "balances a still-strong medium-term growth outlook and external resilience from solid foreign- reserve buffers, against high public debt, a weak financial sector and some lagging structural factors".
Five stocks under F&O ban
Five stocks – Canara Bank, Indiabulls Housing Finance, NALCO, Punjab National Bank, and SAIL – are under the F&O ban today.
