After a crash, Indian indices hope for recovery!
Overnight on Wall Street, Nasdaq and S&P 500 snapped their four-day losing streak, while Dow ended its three-day losing streak.
On Monday, the Indian markets extended its decline for the fourth straight session. This makes us wonder: Will the domestic markets repeat the story of Wall Street?
The early trends in SGX Nifty indicate that the markets are likely to open with a positive bias as SGX Nifty trades with gains of 5 points at 11,165 levels. If the bulls in today’s session managed to protect the low of 11,085, they could attempt for a pullback level towards the levels of 11,250.
Asian indices seem to lack a clear direction on Wednesday. Japan’s Nikkei 225, which resumed trading after a long weekend, was down by 0.61 per cent while Hong Kong’s Hang Seng shed 0.18 per cent whereas China’s Shanghai Composite added 0.08 per cent.
Indian markets extended its fall for the fourth straight session on Tuesday with Nifty and Sensex closing below its important levels of 11,200 and 37,750. The broader indices witnessed a severe fall with Nifty Mid-cap and Small-cap declining 1.54 per cent and 1.76 per cent, respectively. On the sectoral front, barring Nifty IT and Nifty Pharma, all other indices ended in red wherein, Nifty Media and Nifty Realty became the top losers.
US stocks ended Tuesday’s session on a positive note with the tech-heavy Nasdaq outperforming its counterparts as it jumped 1.7 per cent, followed by S&P 500, which was up by 1.1 per cent and Dow added 0.5 per cent.
The key catalyst helping to revive the sentiment on Wall Street was the testimony of Federal Reserve Chairman Jerome Powell where he reiterates that the Fed will offer support to the economy for as long as it takes. Further, the existing home sales continued to move higher in August. The majority of the European indices too ended in green amid Eurozone consumer confidence ticking up further in September.