Trends on SGX Nifty indicate a cautious opening for the index in India with a 19-point gain. The Nifty futures were trading at 18,014 on the Singaporean Exchange.
Indian markets could open flat to mildly higher following largely positive Asian markets today, and positive US markets on Monday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, the "Nifty is expected to open flat around yesterday’s close at 17,930. Nifty has support at 17,600 and 17,450 levels and resistance at 17,950 and 18,050 levels. Traders are suggested to avoid long positions till the time Nifty trades above 18,350."
Mohit Nigam, Head - PMS, Hem Securities said, "The benchmark Indices are expected to open on a slight positive note as suggested by trends on SGX Nifty. Nasdaq ended with +0.63 percent gains yesterday led by Tesla and Meta Platforms but it seems investors will once again take big bets only after the FOMC meeting. European Indices also ended higher on Monday with the French Index gaining +0.9 percent while UK and German Indices gaining +0.7 percent.
"On the technical front, after weakness from previous 2-3 sessions, the green candle formed yesterday indicates a sharp bounce back from lower levels. This may lead to pull back rally upto 18200-18250 levels and if market sustains at these levels we can again witness levels of 18500 in near term," said Nigam.
Nifty closed up on November 1 after a three-day losing streak. At close, Nifty was up1.46 percent or 258 points to 17929.6. In the process it registered the biggest one day gain in almost 5 weeks.
Advance decline ratio was sharply up. FPI selling seems to have waned on November 1. Nifty has smartly bounced up taking even the broader markets higher. 18033-18098 is the next band of resistance while 17799 is the support.
US stock indices closed at record high
All three US major stock-market indexes closed at records on Monday amid a strong third-quarters earning season for many companies, ahead of this week’s pivotal Federal Reserve meeting. According to Credit Suisse, earnings by S&P 500 companies have beaten estimates by 10 percent in the third quarter.
The Fed will announce its latest monetary policy decision on Wednesday, with expectations it will finally announce the tapering of asset purchases. Traders will be closely scrutinizing the commentary around its latest actions.
A closely-followed gauge of U.S.-based manufacturing activity (ISM) inched lower to 60.8 percent in October from 61.1percent in the prior month. And the IHS Markit final purchasing managers index reading for October fell to 58.4 versus an initial estimate of 59.2.
Asian markets steady in early trade
Asian markets were steady in the early Tuesday trade with Hang Seng and Kospi trading at +1.6 percent while other Asian Indices trading with modest gains.
Asian stocks opened steady Tuesday as traders evaluated a record-high close for US equities and awaited key central bank decisions amid concerns about elevated inflation.
Stocks to watch out for
Stock-specific actions can be witnessed in stocks such as Tata Motors (Company misses estimates), Adani Transmission (signed share purchase agreement with REC Power Development and Consultancy for acquisition of its entire stake in MP Power Transmission Package-II), Grasim Industries (commissioned a new line of 300 ton per day capacity of Viscose Staple Fibre). Earnings to watch today include Bharti Airtel, Sun Pharma, Dabur India, Godrej Properties etc.
Commodities prices stabilize
Commodities stabilized with a further drop in Chinese coal prices pushing them 50 perc below last month's record high.
Oil prices rose on Tuesday as key producer group OPEC undershot its expected pace of output increases last month, while the world’s top oil consumer China ramped up operating rates to meet a spike in diesel demand. OPEC+, stuck to gradual, monthly production increases of 400,000 barrels per day (bpd), despite calls for more oil from major consumers.
Malaysian stocks fall on Monday
Malaysia stocks fell on Monday as the government announced a one-off “windfall” tax on companies to raise revenue for the coming year to fund the largest ever spending plan.
India trade deficit declines marginally in October
India trade deficit fell marginally in October as exports picked up while imports eased. Trade deficit stood at $19.9 billion in October compared to $22.6 billion in September. The monthly deficit in September was at an all-time high. Exports rose to $35.47 billion in October, a 5 percent rise on a monthly basis and 42.3 percent annual increase. Imports fell 1.8 percent month-on-month to $55.37 billion. On an annual basis, it increased 62.5 percent.
