Indian markets may kick off week on back foot; Route Mobile to make debut today

The Indian markets are likely to open the session with a negative bias as SGX Nifty is trading down by 39.50 points at 11,479.50.

During the last week, Nifty did not make any headway as it continued to oscillate in the range and ended the week with a meek gain of 0.35 per cent. And, this was clearly reflected in the price action as the candle formed on the weekly chart is an indecisive candle, which indicates a tug of war between the bulls and the bear. However, as long as the high of the bearish engulfing pattern is not taken out by the bulls, which stands at 11794, bears would have an upper hand. For the day, the level of 11,430 is an important support level.

The major activity is likely to be seen in the primary market with two IPOs - CAMS and Chemcon Speciality Chemicals, opening for a subscription today. Also, Route Mobile will make its debut today on the exchanges.

The majority of the Asian indices were trading lower on Monday morning amid a sharp decline seen on Wall Street in Friday’s session. Japan’s Nikkei 225 was trading with modest gains of 0.18 per cent, while Hong Kong’s Hang Seng and China’s Shanghai Composite was down by 0.61 per cent and 0.10 per cent, respectively.  

Indian markets ended the final trading session of the week with minuscule losses as Nifty and Sensex dropped 0.10 per cent and 0.34 per cent, respectively. The broader indices too ended the day with modest losses with Nifty Mid-cap and Small-cap losing 0.07 per cent and 0.44 per cent, respectively. On the sectoral front, the majority of the sectors ended in red wherein Nifty PSU Bank, Nifty Bank, Nifty Financial Services were the top losers. On the flipside, Nifty Pharma was the show-stopper as it jumped almost 5 per cent.

All three major US stock indices witnessed a sharp sell-off on Friday despite consumer sentiment hitting its highest level since March and the leading index improves for the fourth straight month in August. Throwing cold showers on a rosy economic data was the indecision about a fresh round of stimulus package. Adding fuel to the fire was a sharp drop in technology mammoth like Apple, Google, and Microsoft. At close, S&P and Nasdaq lost over a per cent, while Dow shed 0.88 per cent. European indices too were in the red as a resurge in Coronavirus cases resulted in some serious selling in travel and tourism-related stocks.