Trends on SGX Nifty indicate a cautious opening for the index in India with a 17-points gain. The Nifty futures were trading at 18,229 on the Singaporean Exchange around 07:30 AM.
Indian markets could open flat to mildly higher following rangebound Asian markets today, and mixed US markets on Wednesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty is expected to open positive at 18,200. Since the last few trading sessions Nifty has been correcting and charts suggest it may continue doing so for the next few sessions. Traders are suggested to book profits on every rise and avoid taking new long positions till we get a bullish confirmation. Nifty has support in 17,980 and 18,050 range and resistance in 17,300 and 18,350 range."
Mohit Nigam, Head-PMS, Hem Securities said, "The benchmark Indices are expected to open on a cautious note as trends on SGX nifty indicate a flat opening with 5 points gain. Shares in Asia- Pacific declined in Thursday morning trade as investors await the bank of Japan’s latest monetary policy announcement.
"Shares slipped in Japan and Australia and were little changed in South Korea. Ten-year and 30-year US Treasuries held a rally. Commodities including aluminum, iron ore and crude oil dropped. Investors are awaiting the European Central Bank policy meeting as well as a report later Thursday on US economic growth."
Crucial support for Nifty 50 is 17,800 while Nifty may face some resistance at 18,300. Nifty fell on October 27 after gaining on the previous day. At close Nifty was down 0.31percent or 57.45 points at 18210.95.
Nifty lost some steam on October 27 after gaining it on the previous day. However 18155 is the crucial support and till it is breached, Nifty has a chance to continue the uptrend. Advance decline ratio ended in the positive but fell from the morning levels, suggesting profit taking in broader markets.
US stocks close lower
The Dow Jones Industrial Average and S&P 500 index finished lower Wednesday, while the Nasdaq ended flat, as investors absorbed a huge batch of earnings from technology heavyweights.
So far roughly 38 percent of the S&P 500 has reported earnings. Of the names that have posted quarterly updates, 83 percent have topped earnings expectations, while 79 percent have exceeded revenue estimates.
Sino-US tensions were in focus after the Federal Communications Commission gave China Telecom 60 days to leave the U.S. market. Regulators cited a potential national security threat from the company, such as the disruption of U.S. communications, amid rising tensions between the countries.
Brazil’s central bank on Wednesday raised interest rates by 150 basis points to 7.75 percent, stepping up its battle against a deteriorating inflation outlook after the government moved to loosen its constitutional spending limit.
Meanwhile, in a surprise move Wednesday, the Bank of Canada said it would abruptly end its bond buying program and warned of prolonged inflation through 2023, while also signaling it may hike interest rates sooner than expected, the second quarter of 2022.
Asian stocks fall in early trade
Most Asian stocks fell Thursday amid concerns that the recovery from the pandemic will slow as elevated inflation forces tighter monetary policy. The Bank of Japan is also set to announce its latest monetary policy decision on Thursday. The central bank is expected to hold steady on policy, according to Reuters.