Indian markets likely to open higher as stimulus talks stay alive!
The Indian markets are likely to continue their bullish momentum as the global cues are cheerful since stimulus talks remain alive. SGX Nifty is trading up by 22 points at 11,930 levels. The index has a resistance placed around the levels of 11,950 and until and unless this level is not crossed convincingly, it’s better to refrain from making any heavy long positions in the index. Meanwhile, the broader indices can be looked into for some stock-specific trading opportunities.
Key results on tap for the day are Bajaj Finance, Bajaj Finserv, Colgate-Palmolive (India) Ltd, and UltraTech Cement.
It’s a wonderful Wednesday for the Asian indices as strong overnight leads from Wall Street helped the indices to advance. Hong Kong’s Hang Seng is up by 0.82 per cent, Japan’s Nikkei 225 has added 0.42 per cent and China’s Shanghai Composite is trading just above the neutral line.
Indian markets extended their northward journey for the third day in a row on Tuesday with Sensex closing above the 40,500 mark, while Nifty settled shy of the 11,900 mark. Though benchmark indices eked out modest gains, the advance-decline ratio was in the favour of advancers. The broader market indices outperformed the frontline gauges with Nifty Mid-cap and Small-cap adding 0.63 per cent and 0.38 per cent, respectively. On the sectoral front, Nifty PSU Bank and Nifty FMCG were the top losers while on the flipside, Nifty Realty, Nifty Media and Nifty IT became the top gainers.
Tuesday turned out to be a turnaround day for the US stocks as the stocks rebounded after posting strings of losses. The key catalyst for the turnaround on Wall Street was the renewed optimism related to the pandemic relief deal. If we sum-up the recent moves on Wall Street, it is moving on the back of hope and despair. It also moves up when there is some news which ignites hopes that the pandemic relief deal will go through, while on the other hand, it tanks as despair makes way.
On the economic front, housing starts for September rose 1.9 per cent on MoM basis but still, it was below estimates. At close, S&P 500 advanced 0.5 per cent, while Dow and Nasdaq rose 0.4 per cent and 0.3 per cent, respectively. The majority of the European markets ended lower as the rising Coronavirus cases further dampened the sentiment.