Markets likely to open on a positive note!
The global cues are positive and as a result, SGX Nifty is indicating a gap-up start for Indian markets. Key catalyst for this optimism is a hope that US and China might avoid another bruising clash over trade and market participants are of the view that trade deal would actually progress. At the time of writing, SGX Nifty has climbed 101 point to 9,357 levels. The zone of 9,350-9,450 is a crucial hurdle for Nifty and only sustaining above this level, would change the landscape to bull mode. Further, what makes us believe that it is quite challenging for the bulls to cross the barrier of 9,350-9,450 is the jump in the cases of Coronavirus. As per media reports, India recorded its highest single-day jump in COVID-19 cases with the total number crossing 4,000 for the first time. Also, with a sharp spike of over 50 per cent in the government annual borrowing target could be the big overhand for India.
On the earnings front, the market participants will react to ICICI Bank earnings and on Monday, about 13 corporates are likely to announce their earnings, which include Motilal Oswal, Godrej Properties and Wockhardt.
It’s a sea of green for Asian equities on Monday, following a strong finish at Wall Street in Friday’s trade. Hong Kong’s Hang Seng has jumped 1.80 per cent and Japan’s Nikkei 225, has surged 1.42 per cent while, China’s Shanghai Composite has added 0.35 per cent.
On Friday, the key benchmark indices began the session on a positive note; however, it failed to capitalise on the positive start and pared its initial gains. At the end of the day, the key benchmark indices closed with modest gains and off day’s high. Nifty closed at 9,252, up by 0.57 per cent and BSE Sensex added 0.63 per cent to finish at 31,643. The broader indices underperformed the benchmark indices with Nifty Mid-cap and Small-cap ending down by 0.33 and 0.85 per cent, respectively. Talking about the sectoral performance, it was a mixed performance with Nifty Pharma, Nifty FMCG, Nifty IT and Nifty Media ending in green while, on the flipside, Nifty PSU Bank and Nifty Auto were the worst-hit.
On the final trading session of the week, US market ended on buoyant note, shrugging horrific US jobs’ report. The optimism on Wall Street, as many believe, the future is brighter in US than it appears. The tech-heavy Nasdaq closed at its best level in over two months as it reclaim 9,100 level, while Dow and S&P 500 rose 1.9 and 1.7 per cent, respectively. Meanwhile, European indices too ended in green.