Bulls to witness Monday morning blues

Sensex and Nifty reclaimed their important psychological level of 37,000 and 10,900 with a strong close on Friday. Post a solid close, market participants would expect the move to continue. However, the early trends in SGX Nifty suggests that bulls are likely to face Monday morning blues. Further, cues from Asian peers too are negative.

SGX Nifty at 7:50 AM is trading down by 45 points at 10,884 levels.

Today, around 40 companies including ACC and SBI Card are slated to announce their quarterly earnings and this could dictate the movements of market, apart from the global cues. Nifty is facing a resistance at 10,980 - 11,000 levels and immediate support is placed at the 200-DMA. Hence, action could be largely stock specific for today.

Following mixed cues from Wall Street, major Asian indices were trading in red on Monday. Further, Japan exports declined again in June, underpinning that the economy has witnessed its darkest time in decades.  The Hong Kong’s Hang Seng is worst hit followed by the Japan’s Nikkei 225 as they descended by 0.89 per cent and 0.34 per cent, respectively. Whereas, China’s Shanghai Composite is advancing higher.

Asian Markets

Domestic indices posted remarkable gains with Nifty reclaiming its 10,900 level and Sensex closed above 37,000 mark on Friday. On weekly basis, bulls extended their upward move for the fifth successive week as Nifty and Sensex advanced 1.2 per cent each. On sectoral front, except for Nifty IT all other indices ended in green. Nifty Financial Services, Nifty PSU Bank, Nifty Auto and Nifty Bank registered themselves as top gainers. Further, the broader markets underperformed frontline gauges. Nifty Mid-cap and Nifty Small-cap added 1.39 per cent and 1.32 per cent, respectively.

On Friday, stocks on Wall Street moved back and forth to finally settle on a mixed note. The sentiment on Wall Street was spoiled due to tenacious rise in new coronavirus cases and surprisingly the consumer sentiment index soured in July. At closing bell, Dow ended in red whereas, Nasdaq and S&P 500 ended with minuscule gains of 0.28 per cent each. Amid buoyancy on sharp rebound in Eurozone construction output that was hauled down due to spike in new coronavirus cases, European indices too ended the session on a mixed note.

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