Moodys cuts India outlook to negative! Markets set for a free fall at start

In the last trading session, the Nifty finally managed to close above the important psychological 12,000 mark. Even though it scaled higher, it looks exhausted, which is clearly evident from the number of indecisive candles, it formed in recent times. This indicates that, rather than positive triggers, the market is waiting for a negative one to cool off. It seems the wait got over at last and the bear witnessed the much-awaited negative trigger this morning – it appeared in form of the changed outlook on India’s ratings by Moody, the rating agency. It has lowered India credit ratings outlook from stable to negative.

Looks like, today we are headed for a depressed open and a shaky trading day. The SGX Nifty is suggesting a gap-down opening of 60 points at 11,999 levels. The big task for the bulls would be to get a weekly close above 12,000 mark; however, the bears will try to get a foot in the door by closing below the prior bar low. On the earning front, key names, such as Ashok Leyland, M&M, MRF, IDFC, Bank of Baroda, and Nestlé are scheduled to report their Q2 earnings today.

The markets in Asia were seen trading mixed in early deals on Friday. The China’s Shanghai Composite and Japan’s Nikkei 225 has advanced 0.29 and 0.24 per cent, respectively while the Hong Kong’s Hang Seng has dropped 0.46 per cent.

Back home, the benchmark indices extended gains for the second session straight on Thursday, with the BSE Sensex closing at record high level and the Nifty, managing to close above the crucial 12,000 mark for the first time since June 4, 2019. There was a positive action on the broader markets too, with the Nifty Midcap and Smallcap, adding 0.69 and 0.47 per cent, respectively. On the sectoral front, Nifty PSU and Nifty Auto ended in red, whereas, Nifty Metal and Nifty Realty surfaced as the top gainers.

As for the global happenings, the bulls were back in the business on Wall Street as the major averages managed to close in positive territory and all the three indices reached their all-time highs during the market hours. The strength on Wall Street was due to the renewed trade optimism, following the news of China and the US, reaching an agreement to rollback tariffs in phases. The European markets, too, ended on a positive note.