Ahead of F&O expiry, markets likely to open on buoyant note

On Thursday, amid optimistic cues from global markets, Indian markets are likely to open with a positive bias. The US Fed has committed to keep the taps flowing till the time growth revives and this is acting as the key catalyst for the bulls. At 7:50 AM, SGX Nifty is trading with gains of 7.50 points at 11,232.50 level.  The clear signal from the Fed pertaining to liquidity is positive for the markets. However, ahead of July series expiry, we might witness some volatility. On the downside, the key support is placed at 11,150 level.

Many corporates including names like Reliance Industries, HDFC and Dabur, are likely to report its quarterly earnings today, making it a busy day.

Post the US Fed’s assured to use all the tools to bring the economy out of the slumber of COVID-19 pandemic, Wall Street witnessed a strong close. As a result, Asian indices were trading with modest gains on Thursday morning.  Hong Kong’s Hang Seng has advanced 0.39 per cent followed by Japan’s Nikkei 225 and the China’s Shanghai Composite that ascended by 0.1 per cent and 0.06 per cent, respectively.

Asian Markets

On Wednesday, heavyweights like Reliance Industries and HDFC Bank failed to retain the domestic indices’ Tuesday’s gains. At the closing bell, Nifty was down by 0.86 per cent at 11,203, while Sensex drowned 1.10 per cent to end at 38,071. However, the broader indices showed a divergent trend as Nifty Mid-cap ended up by 0.48 per cent, whereas Nifty Small-cap fell by 0.09 per cent. The market breadth was tilted towards advances as 998 stocks ended in green, 870 stocks ended in red and 100 remained unchanged. On the sectoral front, mixed trend was witnessed. Nifty Pharma and Nifty PSU Bank were the top gainers and, on the flipside, Nifty Auto and Nifty IT registered themselves as top losers.

With a slew of earnings, economic data and the most important US Fed event, the Wednesday was filled action on Wall Street. The US Fed kept its monetary policy stance unchanged. Further, it also confirmed to continue to utilize all its tools to support the economy.  This acted as music to the ears of the bulls, leading stocks to end the day in green. Nasdaq outperformed, hopping 141 points. This followed by S&P 500 and Dow which climbed 1.24 per cent and 0.61 per cent, respectively. European indices ended the day on a mixed note. This was due to a cautious approach by market participants ahead of the monetary policy from the US Fed.  

US Markets

Europe Markets

Commodity