Markets to see a flat to positive opening

All participants are going to keep a watchful eye on whether the Indian markets carry the positive sentiment from the previous trading sessions after three days of the continued rise and close on a six-month record high?

Going by the early trends in SGX Nifty, Nifty might see a flat to positive opening for the Indian market. SGX Nifty at 7:48 am, was trading higher by 32 points at 11,508 levels.

The frontline indices struggling in the last few trading sessions to sustain at higher levels are moving in a narrow range with higher highs and higher lows, with no apparent weakness visible as fall from day's high, is not sharp or deep.

Nonetheless, such a narrow range most of the time indicates a reversal pattern. The trading range for Nifty is now between 11,250 and 11,550. For the day, Nifty has support placed at 11,350 levels and on the upside, 11,550 would act as a strong resistance.  

Overall, the uptrend in the market remains intact. Now the markets look decent as we have seen participants across the board in the recent rise, hence, a buy on dips would preferably be the theme of the day until we do not see a sharp correction. 

Asian markets seem to lack conviction in their early trade as indices were mixed, showing little movements. Japan's Nikkei 225 and China's Shanghai Composite are marginally down. While Hong Kong's Hang Seng was trading with minuscule gains.  

Asian Markets

Led by banking stocks, the Indian markets zoomed for the third consecutive day on Tuesday. Fresh momentum was witnessed in banking stocks though the Nifty and Sensex remained flat on August 25. Nifty Bank was up by 1 per cent for the third consecutive day and in Tuesday's trade, they were up by 1.3 per cent.  The broader markets continued their outperformance and the Mid-Cap and Small-Cap index closed 0.5 per cent and 0.11 per cent higher from their previous closing. The Nifty Bank index emerged as the top gainer, ending 1.13 per cent higher on the sectoral front. The Auto and Consumer durable index were the other gainers. Indices pertaining to Realty, Oil & Gas and metal closed in red.

In the US, a clear difference was visible between Main Street and Wall Street with regard to the economy after a report on consumer confidence highlighted fall in August to a new pandemic low. The index of consumer confidence came in at 84.8 compared to the expectation of 93.0. What is supporting the US market is constructive talk between US and China, better home sales number and rise in prices of home.

The Nasdaq continued its outperformance for the day, over two other widely quoted US equity indices that are S&P 500 and Dow. European equity, though opened in green by the end of the trading, most of them closed in red.

US Markets

Europe Markets

Commodity