Markets are likely to start positive, but should breach above 11,240 level for aggressive buying

Indian markets are likely to begin its session in green on the buoyant global cues. However, would bulls extend its early lead or fade away like it did in last session? Some of the factors are indicating the latter to be the case. This is because, Bank Nifty is not seen participating over the concern that banks likely to face the burnt post the end of EMI moratorium period. Further, the consistently rising coronavirus cases are adding to the concerns.

At 7:45 AM, SGX Nifty was up by 54 points trading at 11,172.50 level.

On the upside, Nifty’s resistance is placed in the 11,225 to 11,240 zone.

Today on the earnings front, close to 130 companies including big names such as Nestle, Indusind Bank and Ultratech Cement are slated to announce their quarterly earnings.

Amid bullish cues from Wall Street overnight, Asian indices are seen trading in green on Tuesday. China’s Shanghai Composite surged 0.72 per cent, while Hong Kong’s Hang Seng and Japan’s Nikkei 225 added 0.63 per cent and 0.44 per cent, respectively. 

Asian Markets

Over Reserve Bank of India’s (RBI) comment on a likely rise of Non-Performing Assets (NPA) in FY21, added selling pressure in the banking and financial stocks. This led Indian markets to end its first trading session of the week by recording a loss of half a per cent. At closing bell, Nifty skidded below 11,150 level, while Sensex ended below its important psychological level of 38,000. The broader markets underperformed the frontline gauges with Nifty Mid-cap and Nifty Small-cap drowned 1.32 per cent and 0.60 per cent, respectively. On the sectoral front, except for Nifty IT and Nifty Metal, all other sectoral indices ended in red. Nifty Private Bank and Nifty Bank were the top losers.

On Monday, the US markets moved higher, as drug maker Moderna announced to begin its final test on volunteers for Covid-19 vaccine in the US. Further, statement by President Donald Trump’s top economic adviser Larry Kudlow added to the bullish sentiment. In his statement, he sounded confident of a V shaped economic recovery.  The tech-heavy Nasdaq gained 1.67 per cent, while S&P 500 and Dow Jones added 0.74 per cent and 0.43 per cent, respectively. On economic front, durable orders advanced more than expected in the month of June. Amid rising cases of coronavirus in some of the regions of Europe, turned investors cautious, leading European indices to end mostly lower.

US Markets

Europe Markets

Commodity