Indian markets staged a strong rally on Tuesday and interestingly, India Volatility Index (India VIX) cooled off nearly 4 per cent to 24.24 before a major event such as the US Presidential Election.

Despite recording a loss of 2.41 per cent in the last week, Nifty registered gains of 3.51 per cent for the month of October, aided by Bank Nifty, which rallied about 11.5 per cent and recorded its best monthly gains after April 2020.

SGX Nifty indicates that pessimism is likely to greet D-Street at the beginning of the November F&O Series as the former was down by 36 points, trading at 11, 629 levels.

D-Street was once again gripped by uncertainty on Wednesday after news emerged that Germany and France are likely to announce new measures to curb the spike in Coronavirus cases. As we have heard time and again that ‘markets hate uncertainty’, we are going to see the Indian markets extending their losses due to this.

The bulls staged a smart recovery on Tuesday and erased most of the losses registered at the beginning of the week. Instilling further confidence in the bulls' camp was the comment by India’s Finance Minister Nirmala Sitharaman stating that India may be among the fastest-growing large economies next year while addressing at the Fourth Annual India Energy Forum by CERAWeek.

A clear trend would emerge only after the index manages to close above the 12,025-12,040 mark on the upside and on the downside, 11,660-11,620. Till then, Nifty would play in the range. 

Despite a gloom & doom scenario in the global markets, the trends on SGX Nifty indicate a positive start for the index in India, as it trades higher by 39 points at 11,813 levels.  In the overnight development, the US stocks went down like ninepins . Travel-related stocks felt the pinch as investors pressed the sell button on the back of concerns that the new restrictions could be imposed.

Indian markets are likely to begin the week on a soft note as cues from the global peers are not supportive. In fact, the news of a resurge of Coronavirus cases in the West is throwing cold showers on the hopes of economic recovery.

On Thursday, Indian markets marked an end to its four-day winning streak. In the early deals, SGX Nifty vacillates near the dotted lines, indicating a listless start.

In the last trading session, we saw that volatility raised its ugly head on D-Street and on Thursday. SGX Nifty is indicating opening bell losses to be seen on D-Street and the day promises to be another volatile trading day on the back of the expiry of weekly derivative contracts.