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Trends on SGX Nifty suggest gap-down opening for market indices

08:48 AM Dec 02, 2021 | FPJ Web Desk

Trends on SGX Nifty indicate a gap-down opening for the index with a loss of 106 points.

Indian markets could open mildly lower in line with mixed Asian markets today and sharply negative US markets on Wednesday, said Deepak Jasani, Head-Retail, HDFC Research.

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Gaurav Udani, Founder and CEO of ThincRedBlu Securities, “Nifty is expected to open around 17,120 , down by 50 points. Nifty has strong support in 16,850-16,750 range and resistance in 17,250-17,350 range. Overall the trend in Nifty is weak and we may see the markets moving towards its support zone. Traders are suggested to avoid fresh longs and use pull back to exit existing long positions.”

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Mohit Nigam, Head - PMS, Hem Securities said, "Benchmark Indices are expected to open on negative note as suggested by trends on SGX Nifty. European markets closed in green. On Wednesday Indian Benchmark indices closed on a positive note on the back of good GDP numbers and second highest GST collection ever in the month of November though negative global cues and new covid variant threat still looms. All sectoral indices closed in green barring Pharma. Prominent gainers among the sectors were Auto , IT and Metal.

The three day initial public offering of Anand Rathi will commence today (Dec 2) and will conclude on Dec 6.

On the technical front, the key resistance levels for Nifty50 are 17230 followed by 17300 and on the downside 17080 followed by 16999 can act as strong support. Key resistance and support levels for Bank Nifty are 36600 and 35900 respectively.

Nifty ended the day higher on December 1 as global markets stabilized after the panic over the new COVID variant subsided. At close Nifty was up 1.08 percent or 183.7 points at 17,167.

Nifty rose smartly on Dec 01, though accompanied by low volumes. Advance decline ratio ended in the positive. Positive momentum could continue in the near term and Nifty could rise towards 17324-17355. On downmoves, 17051-17064 could offer support.

US stocks close in red

The US stock market started December the same way it ended November, with a whipsaw trading session that saw the Dow Jones Industrial Average swing by nearly 1,000 points from peak to trough, ushering in an unsettling phase of volatility in the final month of 2021.

US markets closed in red after central bank commented on inflation and bond tapering amid a new covid variant threat. Asian markets are giving missed signals.

Equity indexes squandered what had been shaping up to be a solid rebound, falling after Dr. Anthony Fauci, President Joe Biden’s top medical adviser, said the US confirmed its first case of the omicron variant of the coronavirus that causes COVID-19. Private payrolls in the U.S. rose by 534,000 in November vs 506,000 expected. ISM Manufacturing index rose to 61.1 in Nov from 60.8 in the previous month.

Oil settles lower

Oil futures settled lower on Wednesday, erasing earlier gains, after the U.S. reported its first case of the omicron variant of coronavirus, which poses a risk of new lockdowns that may lead to lower energy demand. WTI crude fell 61 cents, or 0.9 percent, to settle at $65.57 a barrel. Investors were also focused on a pending decision on output levels by the Organization of the Petroleum Exporting Countries. OPEC and its allies, together known as OPEC+, will hold a ministerial meeting on Thursday.

India posts record merchandise trade deficit in November

India posted a record merchandise trade deficit of $23.27 billion in November compared with $10.19 billion a year ago, preliminary data released by the government showed on Wednesday. India's merchandise exports rose to $29.88 billion for the month from $23.62 billion in the same period last year, while imports rose to $53.15 billion in November from $33.81 billion last year.

Asia Pacific stocks trade low

Stocks in Asia-Pacific struggled for direction in Thursday trade, as concerns over the economic impact of the omicron COVID variant continue to weigh on investor sentiment.

Anand Rathi IPO to open today

The three day initial public offering of Anand Rathi will commence today (December 2) and will close on December 6.

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