Bulls likely to break shackle on market greenery

Tracking positive global cues with indications of Nifty to open with gains of 43 points at 11, 362 levels, the Indian markets are likely to open in green. With index likely to open near its resistance level as on the upside, the zone of 11,340-11,380 continues to be a strong hurdle for the bulls. It would be interesting to note if the bulls break the shackle and move past this resistance or they see their opening gains fizzle.

Going by the supportive global cues it is most likely to move past this resistance zone. In the last trading session, it was noted that domestic markets despite cooling off from the higher levels, the market breadth was encouraging with participation seen from across the board. The announcement of IIP data, scheduled for today would also be at the centre of focus for Market participants.

A tremendous rally in the Dow Jones on Wall Street overnight is aiding the sentiments in Asian Indices as a result indices in Asia were trading in green on Tuesday morning. Hong Kong' Hang Seng is leading from the front as it has gained 2.30 per cent trading within striking distance from its important psychological mark of 25,000 followed by Japan's Nikkei which has risen 1.75 per cent, while the China's Shanghai Composite had added 0.57 per cent.

Asian Markets

Indian benchmark indices kicked-off on a positive note for the week; however, in the second half of trading sessions indices pared some of its gains and ended the day with gains of nearly half a per cent. The Nifty ended at 11,270 and Sensex closed at 38,182. The broader indices outperformed the frontline gauges with Nifty Mid-Cap and Small-Cap surging 1.36 and 1.72 per cent, respectively. On the sectoral front, buying interest was seen across the board, with Nifty Pharma jumping more than 5 per cent and ended as the top gainer. 

In overnight development, a divergent trend was seen on Wall Street as the Dow and S&P closed in positive terrain, while the tech-heavy Nasdaq ended with losses. The Dow and the S&P recorded their best closing levels nearly in five months. The key catalyst flaming the bullish sentiment was JOLTS job openings rose more than expected. European markets ended the day with a bullish bias lifted by improved economic data as Eurozone investor confidence advanced for a fourth consecutive month in August to its best level since February 2020.

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