Trends on SGX Nifty indicate a flat opening for the index in India with a 2 points gains. The Nifty futures were trading at 16,274 on the Singaporean Exchange around 07:20 AM.
Indian markets could open flat to mildly lower, in line with largely flat Asian markets today and mixed US markets on Monday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
“Nifty is expected to open slightly negative, down by 10 points since Monday’s (August 9) close. On Monday, the Nifty took support at 16,180 level. 16,150-16,200 will act as a strong support range and as long as Nifty is holding above it , we can expect 16,350 and 16,400 in the coming sessions. Trend in Nifty will remain bullish as long as it holds 15,900 level”, said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
Nifty, after opening mildly higher on Monday, soon gave up morning gains. It formed an intra day low at 13:45 hours post-which a decent recovery ensued. At close the Nifty was up 0.12 percent percent or 20 points at 16,258. Volumes on the NSE were the lowest since July 14.
Indian equity markets are likely to open on a flattish note as indicated by SGX Nifty trend, said Mohit Nigam, Head-PMS, Hem Securities. “Other Asian markets are putting up a mixed performance as equities in Japan rose while those in China and South Korea fell. Gold and silver steadied on Tuesday after a volatile session on Monday. Brent crude recovered from day’s low yesterday and is currently showing stability around 69 dollars. Delta variant concerns are rising in the US as it records the highest number of cases this week since early February and it shall play a pivotal role in driving the global market’s momentum.”
On technical front, Nifty50 shall continue on its upside momentum with support levels of 16,100 and the near term resistance at 16,400, any significant dip is the good opportunity to invest.
Other key economic indicators to track this week shall be US inflation data on Wednesday and OPEC Monthly Oil Market Report on Thursday. On the domestic front, earnings announcements of several companies will help markets take stock specific actions, said Nigam. Some of the major result announcements will be Zomato, Coal India, Siemens, Power Grid, CAMS, Cochin Shipyard, Motherson Sumi and Manappuram Finance.
Vodafone plans to settle retro tax row with the government while lenders of Future Group might want to consider insolvency resolution if the RIL Future Group deal does not take shape by the end of this calendar year.
The S&P 500 dipped on Monday, as fuel demand worries during a resurgent pandemic sent energy stocks lower but rising US Treasury yields lifted financial stocks, keeping Wall Street’s benchmark index near record levels.
The Dow Jones Industrial Average fell 107.91 points or 0.31 percent to 35,100.6; the S&P 500 lost 4.11 points or 0.09 percent to 4,432.41 and the Nasdaq Composite added 24.42 points or 0.16 percent to 14,860.18
Asian stocks start weak
Asian stocks started off on a weak footing on Tuesday after a largely soft performance on Wall Street and persistent concerns over the spread of the Delta variant of the coronavirus dented sentiment and triggered falls in metals and oil prices.
US stocks fell Monday, losing some steam after rising to all-time highs late last week. Commodity prices tumbled as concerns over the coronavirus’s spread resurged, with crude oil prices moving sharply to the downside but rising US Treasury yields lifted financial stocks, keeping Wall Street’s benchmark index near record levels. The spread of the delta coronavirus variant, profit-taking and a downgrade of China growth by Goldman Sachs dinged bullish sentiment on Wall Street.
China reported more COVID-19 infections, while U.S. cases and hospitalizations were at a six-month high as the Delta variant spread.
Inflows into Indian equity funds climbed to at least a two-year high in July at Rs 22,584 cr. Contributions to systematic investment plans rose for the fourth straight month to an all-time high in July at Rs 9,609 cr. More than 23 lakh SIP accounts opened during the month, also a record.
Stock-specific moves are visible as the Q1 results announcement continues. BSE MidCap shed over 1 percent while the BSE SmallCap declined nearly 0.75 percent. Advance decline ratio continued to be deeply in the negative on August 9. This reflects profit taking across the board by traders/investors. The Nifty has made a lower low and lower high on a near term basis. However, as long as 16,146 is not breached, a larger correction may not begin, said Jasani.
Company results today
Zomato, Coal India, Lupin, Power Grid Corporation of India, Aarti Surfactants, Ahluwalia Contracts (India), Aarey Drugs & Pharmaceuticals, Ashoka Buildcon, Balaji Telefilms, Mrs Bectors Food Specialities, Brookfield India Real Estate Trust REIT, Computer Age Management Services, Capacite Infraprojects, Century Plyboards, Chalet Hotels, Cochin Shipyard, Deepak Fertilisers, Eveready Industries, Galaxy Surfactants, Godrej Agrovet, Heranba Industries, Infibeam Avenues, IRB Infrastructure Developers, Jindal Steel & Power, Krishna Institute of Medical Sciences, Linde India, Manappuram Finance, Max Financial Services, Motherson Sumi Systems, Prestige Estates Projects, Pricol, Reliance Infrastructure, Sequent Scientific, Siemens, Spencers Retail, Trent, Tata Teleservices (Maharashtra), Whirlpool of India, and Wonderla Holidays will release quarterly earnings on August 10.
Oil edges higher
Oil edged higher from a three-week low as investors assessed the demand outlook amid the latest COVID-19 resurgence sweeping the globe. Futures in New York climbed toward $67 a barrel after tumbling almost 4 percent over the past two sessions. The fast spreading Delta variant of the virus has led to rising infections and renewed restrictions in some regions, including China where domestic air travel has slumped. Despite the flare-up, expectations are that demand will accelerate and tighten the market through year-end.
Stocks to make debut in F&O
Ten new stocks will make a debut in the Futures and Options (F&O) segment from the August series, National Stock Exchange (NSE) said in a regulatory filing on Monday. Can Fin Homes, Dixon Technologies (India) Ltd., Hindustan Aeronautics, Indian Energy Exchange, Indiamart Intermesh, Ipca Laboratories, Multi Commodity Exchange of India, Oracle Financial Services Software, Polycab India, and Syngene International.
Jhunjhunwala to pick up stake in Syska: Report
Billionaire investor Rakesh Jhunjhunwala is set to pick a significant strategic sale in top lighting solutions firm, Syska LED, CNBC TV18 reported on August 9. Jhunjhunwala, as per the report, is likely to have signed a MoU to pick the stake in the company.
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