Markets may open firm on the back of positive global cues

The outlook for the day is a firm start as positive global cues are helping the cause. At the time of writing, the SGX Nifty was trading higher by 49 points at the 11,020 level. Technically, the level of 11,200 will be an important level to watch out in the coming sessions and wait for a decisive close above 11200 for a bigger move. Avoid short positions for now, as long as Nifty makes higher highs.

A majority of the Asian markets have opened on a positive note on the hope of a trade deal between the US and China as China is expected to agree to buy more American agricultural products. The Japanese stock index Nikkei 225 was up by 0.57 per cent, Hong Kong’s Hang Seng advanced 0.39 per cent and China’s Shanghai Composite was flat just below the neutral line.  

Back home, after an initial jinx, the markets recovered from their morning lows and surged higher to reclaim their important psychological levels of 11,000 (Nifty) and 37,100 (Sensex). The broader markets outperformed the frontline gauges with Nifty Midcap and Smallcap surging 1.23 per cent and 0.65 per cent, respectively. On the sectoral front, barring Nifty IT, all other indices ended in the green. Nifty PSU Bank, Nifty Private Bank and Nifty Bank were the top gainers.

The US equities finished mixed on Tuesday. The Dow added 0.30 per cent, S&P ended flat with a positive bias, while the tech-heavy Nasdaq ended flat with negative bias.

The European markets clawed back into positive territory after an initial weakness on Tuesday. Germany’s DAX ended with a gain of 0.35 per cent, France’s CAC 40 was up 0.08 per cent and UK’s FTSE 100 ended up 0.44 per cent.