Global weakness to spill on Indian shores, so near yet to so far the level of 13,000 on Nifty

On Wall Street, the stocks cracked impulsively in the second half of trading session and the Asian peers too are feeling the pinch and this weakness will inevitably spill on the Indian shores as well. The SGX Nifty is indicating a scary fall on D-Street as it has cracked 136 points or 1.05 per cent and was trading at 12,857 levels. Would bulls buy the dips, like they did in the previous sessions? Well, the zone of 12,730- 12,800 is a crucial support range and as a long as Nifty holds above this region dips are likely to attract buyers.

Majority of the Asian indices were trading in red on Thursday following strong sell-off on overnight on Wall Street as rising cases of coronavirus send shiver down the spine of equity market participants across the globe. Hong Kong’s Hang Seng and Japan’s Nikkei 225 were down by 0.75 and 0.63 per cent, respectively. While, the China’s Shanghai Composite was trading flat.

Wednesday turned out to be a wonderful day for the bulls as Indian markets recorded yet another record high close with Nifty and Sensex closing above the milestone level of 12,900 and 44,100. The Nifty Midcap outperformed the frontline indices as it surged 1.46 per cent, while the Nifty Smallcap added 0.32 per cent. On sectoral front, the Nifty Auto stocks jumped over 3 per cent followed Bank Nifty   and on other hand, the defensive sectors such as Nifty FMCG, Nifty IT and Nifty Pharma ended in red.

In overnight developments, the bears hit back with a vengeance as concerns over rising coronavirus cases globally took center stage. In economic news, housing starts surged more than expected, but, building permits came in flat. In the end, the Dow and S&P 500 Index lost nearly 1.2 per cent, while the Nasdaq declined 0.8 per cent. On the other hand, European markets eked out gains on Wednesday on back of optimism supported by positive Covid-19 vaccine.