Trends on SGX Nifty indicate a positive opening for the index with a 45 points gain. The Nifty futures were trading at 15,867 on the Singaporean Exchange. All the three major stock indexes eked out record closing highs for a second straight session on Monday as investors were optimistic heading into a slew of earnings from heavyweight technology and internet names this week, while caution ahead of a Federal Reserve policy meeting keeping the market in check.
Indian markets could open flat to mildly higher, in line with mildly positive Asian markets today and mildly higher US markets on Monday.
Indian benchmark equity indices failed to hold on to the intra day gains on July 26 and broke a two-day winning streak. Q1FY22 results from frontline stocks have failed to excite investors at a time when the other Asian markets are reeling under regulatory pressures and rising COVID cases. Nifty finally closed 0.2% lower at 15824.4.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "The Nifty continues to face resistance at 15,900. Although the Nifty is showing strength, the weakness in other markets, if it continues, can impact the Nifty and we could see some more downside in coming sessions. 15899-15768 could be the trading band for the Nifty in the near-term."
The Nifty is expected to open around 15,850, up by 30 points. In the last few days, the Nifty has been trading in a tight range and the range is expected to be broken soon. .Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "15,880 is strong resistance on a closing basis and 15,700 and 15,580 are strong support points. Fresh longs are suggested only once Nifty closes above 16000 levels. Profit booking is suggested is Nifty breaks 15580 on the closing basis".
The US stock benchmarks closed at back-to-back records Monday, as investors await earnings this week from corporate heavyweights, including from Big Tech, and a Federal Reserve policy meeting.
The pipeline of earnings could set the tone, analysts said, but investors also will be focused on China and the US. as tensions rise between the world’s top two economies. Investors waited to hear from the C-suites of Big Tech companies about their expectations for the rest of 2021.
US new home sales fell 6.6% in June to an annual rate of 676,000, the lowest since the first month of the COVID-19 pandemic in early 2020, as high prices and a limited selection appeared to frustrate would-be buyers.
In the United States, investors will closely parse comments by Federal Reserve Chair Jerome Powell on Wednesday after a two-day policy meeting for clues on how the central bank will start tapering its asset purchases, its assessment of inflation risks, and the future of interest rates.
Asian markets edge higher
Shares in Asia-Pacific edged higher in Tuesday morning trade after touching year to date lows the day before, with traders keeping at least half an eye on the United States where major companies report earnings and the Federal Reserve meets on policy this week.
Profits at China’s industrial firms rose 20% in June from a year earlier to 791.8 billion yuan ($122.27 billion), official data showed on Tuesday. Profit growth slowed from the 36.4% increase seen in May, according to the National Bureau of Statistics.
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