Lower opening awaits indices

Going by early indication of SGX Nifty, the market is set to open on a negative note amidst sluggish global clues. At the time of writing, SGX was trading was down by 25 points at 11,003 level. The Nifty index is hovering near the upward trend line support draw adjoining subsequent lows of 10,782, placed around 11,000. Sustaining below the 11,000 mark would invite bears and they may take the index towards its recent swing low of 10,782 in the coming days.

Asian markets were mixed in early trading on Wednesday following a weak close on Wall Street, overnight. The Japanese stock index Nikkei 225 has shed 0.4 per cent; Hong Kong’s Hang Seng has lost 0.25 per cent, while China’s Shanghai Composite Index was up by 0.05 per cent.

Back home, key benchmark indices opened the session with gains, but after trading for a short time in the positive territory, indices slipped into the red terrain and thereafter indices were seen testing intraday lows. In the second half of the session, recovery was seen from lower levels, but indices failed to capitalise on the rebound and ended the session in the red. The Nifty declined by 0.33 per cent to end at 11,017 and BSE Sensex slipped 0.20 per cent to end at 37,328. The broader market indices underperformed the frontline gauges with Nifty Midcap and Smallcap lost 0.85 and 0.62 per cent, respectively. Majority of the sectoral indices ended in the red with Nifty PSU Bank and Nifty Metal were top losers, whole Nifty IT and Nifty Auto ended as top gainers.

The US stock markets ended lower on Tuesday. Selling pressure emerged on Wall Street amid a pullback by bond yields, which move lower following the rebound seen in previous trading session. The Dow fell 0.7 per cent, the S&P 500 declined 0.8 per cent and the tech-heavy Nasdaq ended lower by 0.7 per cent.  

The European indices edge lower on Tuesday weighed down by pressure on bond yields along with festering Italian political and Brexit uncertainties. Germany’s DAX and France’s CAC 40 lost 0.55 and 0.50 per cent, respectively. The UK’s FTSE 100 has dropped by 0.9 per cent.