SGX Nifty indicates a slow start!

Karan Dsij
/ Categories: Trending, Pre Morning
SGX Nifty indicates a slow start! 1411 0

In the last trading session, Nifty and Sensex reclaimed their important psychological mark of 11,500 and 39,000, aided by the last hour surge in the banking stocks. One would have hoped that after closing near the day’s high, the momentum would continue on Wednesday but on the contrary, the early trend is indicating that the Indian markets may open on a weak note as the cues from Asian peers are subdued. Meanwhile, SGX Nifty is down by 34 points, trading at 11,497 levels.

We reiterate unless and until the zone of 11,565-11,585 is pierced convincingly; don't expect a runaway rise. With the indices being trapped in a range, there are not clear opportunities for traders in the index; however, ample traction is seen in the broader markets. Hence, concentrate on picking the right stock from these pockets and wait until a clear trend emerges in the index.

Barring China’s Shanghai Composite index, the majority of the Asian markets were trading with modest gains. Japan’s Nikkei has added 0.11 per cent and Hong Kong’s Hang Seng was up by 0.15 per cent. China’s Shanghai Composite was down by 0.14 per cent.  

Tuesday turned out to be a terrific day for the markets as Nifty and Sensex reclaimed their important psychological levels of 11,500 and 39,000. After opening the session with a positive bias, markets traded in sideways for the majority part of the day. However, during the last leg of the trade, frenzy buying helped the markets to end near the day’s high. In broader markets, Nifty Mid-cap and Small-cap surged 1.09 per cent and 1.53 per cent, respectively. As a result, the broader indices continued to outperform the frontline indices. On the sectoral front, Nifty Pharma, Nifty Private Bank, and Nifty Bank were the top gainers.

US stocks ended Tuesday’s session in the green despite trimming some of its early gains. The tech-heavy Nasdaq outperformed its counterpart and ended the day up by 1.2 per cent at 11,190 level. While Dow ended just above the neutral line and S&P 500 gained 0.5 per cent to end above the psychological level of 3,400.

The stock of iPhone maker Apple was in focus on the back of Apple launch event. However, as the day progressed, the stock lost its sheen and gave away the bulk of its early gains and ended the day on a flat note. The pullback in Apple stock price weighed on Dow along with weakness in some of the notable names.

On the economic front, US Empire Manufacturing Index jumped more than expected this month while on the other hand, US production rose for the fourth month in a row but the pace was has slowed down in August. Markets in the European region too ended the day on an optimistic note after Germany’s economic sentiment rose unexpectedly in September.

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