SGX Nifty indicates subdued start for indices

The global cues which helped to regroup the bulls on D-Street in the last trading session are largely mixed on Wednesday morning. As a result, the Indian markets are likely to open on a subdued note as SGX Nifty trades down by 1.5 points at 11,507 levels.

The level of 11,550-11,560 is very crucial to watch out for in today’s session. If this level is pierced by the bulls, they stand a chance to regain their supremacy. On the other hand, if the bears push Nifty below its 21-EMA support, it would be an end to the bulls’ show for the day. Overall, it is going to be an exhilarating day of trade and thus, we advise the traders to maintain proper risk management systems to trade in this environment.

There is no clear trend seen in the Asian indices on Wednesday morning despite a strong close on Wall Street overnight. Japan’s Nikkei is trading with gains of 0.30 per cent and on the other hand, Hong Kong’s Hang Seng and China’s Shanghai Composite has dipped 0.47 per cent and 0.25 per cent, respectively.

If we have to sum-up Tuesday’s summary of Indian markets in one phrase, it would be ‘all’s well that ends well.’  Markets kicked off the session on an upbeat note but thereafter, it was an exhilarating ride as the markets moved in a zigzag manner. The outcome of the Supreme Court verdict on AGR dues and the announcement of auto sales number also helped ease some of the pressure and due to this, markets ended the day on a positive note. Nifty and Sensex surged 0.73 per cent and 0.71 per cent, respectively.  The broader markets too witnessed buying interest with Nifty Mid-cap and Small-cap adding 0.82 per cent and 0.37 per cent, respectively. On the sectoral front, Nifty Metal and Nifty Pharma were standout performers as they jumped 3.15 per cent and 2.34 per cent, respectively. Meanwhile, India VIX cooled off 5 per cent.

It couldn’t have been a better start than this on Wall Street for the month of September with Nasdaq and S&P registering new record closing highs. The tech-heavy Nasdaq continued to outperform its counterpart as it surged nearly 1.4 per cent, followed by Dow and S&P500. The stock of Zoom was particularly in the limelight on Wall Street as the stock skyrocketed to a fresh all-time high on the back of its quarterly results and guidance. On the economic front, the incoming data continues to impress as August ISM manufacturing rose to 56 from 54.2 in July. Meanwhile, the European indices pared their early gains to end the day on a mixed note as the early optimism was faded after reports indicated a spike in the new Coronavirus cases.