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Trends on SGX Nifty indicate positive start for stock market indices

08:49 AM Nov 30, 2021 | FPJ Web Desk

Trends on SGX Nifty indicate a flat to positive start for the index in India with a gain of 18 points.

Gaurav Udani, founder and CEO, ThincRedBlu Securities said, "Nifty is expected to open flat around yesterday's close at 17,053. Key levels to watch out for Nifty are 16,800 and 1,7250 as support and resistance. Overall, the short term trend is bearish and only high risk traders can consider buy on dips with strict stop loss of 16700."

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Indian markets could open flat to mildly higher in line with flat Asian markets today and despite negative US markets on Friday, said Deepak Jasani, Head-Retail, HDFC Research.

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Nifty closed higher on November 29 after an early morning sell-off. At close Nifty was up 27.5 points or 0.16 percent at 17,054.

Nifty closed the day on November 29 with a long legged doji suggesting possible reversal of the latest downmove. The low of the day i.e. 16,782 will be a crucial level to watch out for on the downside, while on the upside 17,280 could offer resistance.

US stocks close higher

The Nasdaq Composite Index notched its biggest daily gain since May, while Dow industrials and the S&P 500 had their largest percentage climbs in more than a month, after President Joe Biden told Americans the fight against the omicron variant of coronavirus won’t involve “shutdowns or lockdowns.”

Meanwhile, pending home sales rose 7.5 percent in October, compared with September, the National Association of Realtors reported Monday. Economists polled by MarketWatch had projected a 0.7 percent increase for pending home sales in October. Compared with last year, pending sales were down 1.4 percent, reflecting how much home-buying activity has cooled from the breakneck pace of last year.

European Central Bank policymakers sought to reassure investors rattled by the new variant, arguing that the euro zone's economy had learned to cope with successive waves of the pandemic.

Oil prices rebound

Speculation that oil producing group OPEC and its allies, known as OPEC+, may pause an output increase in response to the spread of Omicron aided the oil price rebound.

China PMI above expectations

China’s official manufacturing Purchasing Managers’ Index for November came in at 50.1 on Tuesday. That was above expectations by analysts in a Reuters poll for a reading of 49.6. The official non-manufacturing PMI in November eased to 52.3 from 52.4 in October, as the services sector took a hit from the fresh lockdown measures as China raced to contain the latest outbreak. China's official October composite PMI, which includes both manufacturing and services activity, stood at 52.2, up from October's 50.8.

GDP seen growing at 8.3% in Q2, 9.4% full year

The economy is expected to grow 8.3 percent in Q2 and close the year with 9.4 per cent in FY22 which is 10 bps lower than the consensus forecast, India Ratings said.

The agency has attributed the higher growth to the nine consecutive quarters of over 3 percent agriculture growth, which has brightened consumer spending and the resultant uptick in private final consumption expenditure, which is likely to clip at around 10 percent in the September quarter of the current fiscal.

Another major reason is the near three-fold jump in vaccination, which soared to 890.21 million as of October-end from 335.72 million at June-end.

The government will announce the numbers on Tuesday.

Asian markets trade positive

Asian share markets were trading largely in positive territory on Tuesday as investors became cautiously optimistic the new Omicron variant might not cause a widespread global economic disruption to worsen the coronavirus pandemic.

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