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SGX Nifty indicates cautious opening for stock markets

09:04 AM Jul 29, 2021 | FPJ Web Desk

SGX Nifty indicates a cautious opening for the index in India with a 8 points gain.

The Indian markets could open flat to mildly higher, in line with positive Asian markets today and despite mixed US markets on Wednesday, said Deepak Jasani, Head of Retail Research, HDFC Securities.

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The Nifty is expected to open flat at 15,715. On Wednesday (July 28), the Nifty gave a sharp up move after making a low of 15,513. The Nifty will face resistance in 15,720-15,780 range , above which 15,850 levels can be seen. On the downside, it will take support in the 15,580-15,620 range. Any fall below 15,580 may take it to the 15,500 to 15,450 range, said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

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Nifty broke the 15635 support but bounced back to close marginally in the negative for the day. The selling in the markets got arrested once the Hongkong and Chinese markets reversed their weak trend this morning showing signs of stability after three days of sharp weakness. Broad market however shows weakness as per the weak advance decline ratio. Nifty can now stay in the 15635-15797 band for the next 1-2 sessions.

US stock indexes had a mixed finish Wednesday, after the Federal Reserve said it would keep interest rates steady near zero and retain its full range of tools to support the economic recovery during the pandemic. Investors also were focused on results streaming in from the busiest week of corporate earnings reports for the second quarter.

Stocks mostly got a boost after the Federal Reserve opted not to tighten monetary policy following a two-day meeting, reiterating that the path of recovery will depend on the virus. Powell said the topic of timing of tapering continues to be studied by the central bank and reiterated that any future decisions will remain data dependent. Powell also said the U.S. job market still had "some ground to cover" before it would be time to pull back from the economic support.

The US trade deficit in goods rose 3.5 percent in June to record $91.2 billion, and advanced US wholesale inventories climbed 0.8%, while retail inventories increased by 0.3 percent last month.

Asian shares calm

Asian shares managed an appearance of calm on Thursday as the US Federal Reserve signalled it was in no rush to taper stimulus, though the mood was fragile as investors waited to see if Beijing could stem the recent bloodletting in Chinese shares.

Indian benchmark equity indices saw the sharpest recovery in recent times from morning lows on July 28. At close the Nifty closed 37 points or 0.24 percent lower at 15709.4.

Oil prices get a fillip

Oil prices received a fillip after data showed US crude inventories fell more sharply than analysts had forecast, overshadowing worries that a resurgent pandemic might hit demand.

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