Start your day with smile as SGX Nifty indicates a positive opening!
The Indian markets are gripped by three key factors namely, fear, uncertainty, and doubt. The fear is rising as it is quite evident from the surge in India VIX. Uncertainty is hovering over as some countries are planning another lockdown to combat the spread of Coronavirus and doubt over the pace of economic recovery.
With this, the markets have tanked heavily for the past six trading sessions and on Thursday, it recorded its worst single day in nearly four months. The early trends for SGX Nifty are indicating that the markets are likely to open in green as it’s trading 64 points higher at 10,909 levels. However, sustaining at higher levels would be a big question as in the past few sessions, we have seen that despite opening higher, the markets have reversed their gains and ended in the red. The key level of support for Nifty is placed at 10,760, which is the 200-DMA.
A positive close on Wall Street in the overnight trade is aiding to revive a bullish sentiment for Asian stocks. The majority of the Asian indices are trading in the green on Friday. Hong Kong’s Hang Seng and Japan’s Nikkei 225 were up by 0.66 per cent and 0.63 per cent, respectively while China’s Shanghai Composite has gained 0.17 per cent.
The bloodbath continued on D-Street as the key benchmark indices plunged nearly 3 per cent on the last day of the F&O expiry of September series. With this, markets extended its fall for the sixth straight day in a row. The market participants were spooked by the rising cases of Coronavirus worldwide. The fear gauge of Indian equity markets i.e. India VIX jumped 12.32 per cent to 23.51. The broader indices followed the suit with Nifty Mid-cap and Small-cap plummeting 2.51 per cent and 2.57 per cent, respectively. On the sectoral front, all the indices ended in red with Nifty Metal and Nifty IT becoming the top losers.
US Stocks ended Thursday’s session with timid gains and the move was not a smooth one as the stocks swung both ways navigating mixed economic data and fear of rising infection cases of Coronavirus globally. Under the economic news section, new home sales unexpectedly surged to their highest level since September 2006, while the jobless claims came in higher than estimates. In the end, Dow added 0.2 per cent, S&P 500 rose 0.3 and Nasdaq climbed 0.4 per cent. On the other hand, European markets too ended lower as a panic of the second wave of Coronavirus pushed the market participants on the back foot.