Markets may begin the week on a positive note

The last week turned out to be a lackluster one. Although the Indian stock markets closed with marginal gains, the Nifty 50 index could not sustain above 12,000 levels. For the last three weeks, the index is forming indecisive candles and this candle formation, near the lifetime high levels, is creating confusion among traders. The early indication from the SGX Nifty suggests that the Indian markets are likely to kick-off the new week on a positive note as cues from Asian peers are optimistic.
 
On the Asian side, the markets are inching higher on Monday morning after pro-democracy candidates recorded a landslide victory in local elections in Hong Kong. Hong Kong’s Hang Seng is currently trading a good 1.76 per cent higher from its previous close. Japan’s Nikkei 225 is up by 0.96 per cent and China’s Shanghai Composite surged 0.32 per cent from its previous close.
 
Back home, the final trading session of the week turned sour for the markets, with key benchmark indices registering a loss of about a half per cent as the Nifty and BSE Sensex settled at 11,914 and 40,359 mark, respectively, at the close. On a WoW basis, the indices ended flat, where the Nifty added 0.16 per cent and the BSE Sensex was almost unchanged. The broader market indices ended on a mixed note, with Nifty Midcap adding 0.03 per cent while Nifty Smallcap posted a minuscule loss of 0.08 per cent. On the sectoral front, Nifty Metal and Nifty Media were the top gainers, whereas, Nifty IT was the top loser. shares of IT companies remained under pressure on the report of modifications in the US work visa.
 
In overseas markets, the US equities eked out modest gains on Friday. In terms of the economy, it was a light day for economic reports. However, the University of Michigan’s Consumer Sentiment survey was unexpectedly revised higher for November. The European indices, too, ended the day in green as the markets digested a host of manufacturing and services sector reports for this month.