SGX Nifty indicates a flat open; key support seen at 11,380 level
Early trends in SGX Nifty suggest that the Indian markets are likely to open on a flat to positive note amid mixed cues from the Asian peers.
SGX Nifty was trading up by 17.5 points at 11,471.50 levels. The level of 11,380 is a crucial support for the index and the zone of 11,565-11,585 remains a key hurdle for the index. Until and unless Nifty clears this resistance zone on a closing basis, every rise is likely to attract selling just like what we had seen on Monday. Also, it would be interesting to see whether the firework continues in the small-cap index, which witnessed a gigantic rally of over 5 per cent, or was it just a one day wonder?!
Asian markets on Tuesday morning lacked a clear direction despite a strong close on Wall Street overnight. As the market participants waited for the release of Chinese economic data that includes industrial production, retail sales, and fixed asset investment, is due to be released today. Hong Kong’s Hang Seng was up by 0.45 per cent, while Japan’s Nikkei 225 and China’s Shanghai Composite were down by 0.62 per cent and 0.18 per cent, respectively.
The buoyancy with which the Indian indices stared off the Monday session, tapered off in the second half of the trading session. As a result, not only indices gave away their early gain but also ended the day with modest losses. On the other hand, the broader markets were on cloud nine especially Nifty Small-Cap index, which jumped more than 5 per cent after the watchdog SEBI tweaked MF norms for multi-cap funds. This was the single best day gain registered by Nifty Small-cap since May 2014. On the sectoral front, Nifty IT and Nifty Realty were the top gainers while on the flip side, Nifty Bank and Nifty Financial Services were the top losers.
On Monday, bulls made a strong comeback on Wall Street as all the three major US stock markets surged over 1 per cent with the tech-heavy Nasdaq leading the way. Optimism related to the COVID-19 vaccine helped foster the rally on Wall Street. Meanwhile, the European indices ended on a mixed note as early enthusiasm faded as the day progressed.