Better start in store!
In the early trend, SGX Nifty is trading in green as global cues turned cheerful. SGX Nifty is pointing at a positive start and Nifty is expected to open around 12,082 levels, up by 43 points. However, the question arises: Will bulls be able to extend this early gain or bears will use the rallies to short the markets? We believe these early gains are likely to fade away until and unless Nifty trades and sustain above its 50-DMA as currently, the sentiment on D-Street is sour. What could change the sentiment on D-Street? Perhaps the Economic Survey for 2019-2020, which is expected to release later in the day, or any encouragement from the next batch of quarterly numbers that include SBI, HUL, ITC, Tech Mahindra and Vedanta.
Asian markets are rising on Friday on the back of positive cues overnight from Wall Street. Japan’s Nikkei 225 jumped 1.26 per cent and Hong Kong’s Hang Seng has gained 0.75 per cent.
Back home, the markets ended sharply lower on Thursday on the back of weak global cues. Nifty and Sensex ended the day below its important psychological mark of 12,050 (Nifty) and 41,000 (Sensex). Broader market indices like the Nifty mid-cap and small-cap indices lost more thereby, underperforming frontline indices. On the sectoral front, all the indices closed in negative territory. Nifty Pharma and Nifty FMCG declined the most.
As for global happenings, US markets started off deep in the red as World Health Organisation (WHO) declared the coronavirus outbreak-a global health emergency and the rising number of cases and deaths related to the virus is causing worries about the global economy in 2020. The markets participants even shrugged off a slightly better than expected Q4 GDP report. However, good earnings performance changed the sentiment on Wall Street and buoyancy was seen which lifted the markets as a result all three of the major indices ended in green. Dow was up by 125 points, S&P 500 added 10 points and Nasdaq was ahead by 24 points. Meanwhile, European markets ended lower on Thursday.