Expected to be a bullish day; IPO of Rossari Biotech opens for subscription

In the last week, the surge in COVID-19 cases capped the rally and Nifty failed to cross its 200-DMA despite encompassing its up move for the fourth straight week in a row. On Friday, Nifty formed a Spinning top on weekly chart and a doji on the daily chart and both are indecisive candlestick patterns. Hence, both the bears and bulls would like to gain center stage and resolve this indecision. However, the early trend in the SGX Nifty suggests that at the start of the week, bulls have an advantage.

At 7:50 AM SGX Nifty is trading higher by 54 points or 0.50 per cent.

Retail inflation data will be announced today and market participants are likely to track the same. Also, the specialty chemical company will be in the spot light as nearly after a lull of four months IPO market would be back into action as Rossari Biotech’s IPO opens for subscription today.

The clinical trial of first COVID-19 vaccine on volunteers has been successfully completed and is devastating the concerns over the surge in Coronavirus cases worldwide. Therefore, following the positive cues from Wall Street, most of the Asian indices are seen advancing on Monday. The Japan’s Nikkei 225 has gained the most as it surged over 1.5 per cent followed by Hong Kong’s Hang Seng that jumped 0.34 per cent. China’s Shanghai Composite showed modest gains of 0.02 per cent.

Asian Markets

The bulls extended their up move for the fourth straight week despite domestic indices ending the last trading session of the week with modest losses amid spike in coronavirus cases. Last week, Nifty and Sensex jumped 1.51 per cent and 1.59 per cent, respectively. On Friday, majority of the sectoral indices ended in red with Nifty PSU Bank, Nifty Private Bank and Nifty Bank recorded themselves as top losers. On the other hand, Nifty Pharma, Nifty FMCG and Nifty IT were the top gainers. Also, the advance-decline ratio was inclined towards decliners as 1,258 stocks declined and 617 advanced. The broader markets too declined on Friday as Nifty Mid-cap and Nifty Small-cap were down by 0.71 per cent and 0.20 per cent, respectively. 

On Friday, all the three major stock indices on Wall Street ended higher. Dow ended the session above 26,000 level clocking the gains of nearly 1.44 per cent, leading from the front. Tech-heavy Nasdaq managed to log yet another record high closing, despite underperforming its counterparts. Gilead Sciences said that remdesivir reduces the risk of death in coronavirus patient, turned the sentiment cheerful on Wall Street. Further, this news also aided to ease concerns of spike in coronavirus cases. European markets too ended Friday’s session in green.

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