Optimism continue to stay; Nifty likely to open above 10k Mark

For the first time after January, Nifty rallied for five consecutive trading sessions on Tuesday. Said that, it decisively closed above the high made on April 30, 2020. Both, the FIIs and DIIs indulged in buying activity on Tuesday where FIIs were seen as net buyers to the tune of colossal Rs 7,498.29 crore, while DIIs bought shares worth of Rs 441.05 crore. It seems that the bulls are going to have a perfect pitch to bat on. It may see encompassing its rally for the sixth straight session on the back of global markets continuing to be positive, economies reopening across the world and IMD’s anticipation of a normal monsoon.

At 7:57 AM, SGX Nifty is trading up by 94 points at 10,073.50 levels.  

Today on earnings front, companies including key stocks like Aurobindo Pharma and BPCL are slated to announce their earnings for quarter ended March 2020.

On the back overnight gains on Wall Street, shares were trading higher in Asia on Wednesday. Japan’s Nikkei 225 leading the chart as it added over a per cent followed by Hong Kong’s Hang Seng and China’s Shanghai Composite that gained 0.98 per cent and 0.40 per cent respectively.

Asian Markets

Domestic equity markets rallied for the fifth consecutive day ending near the day’s high level on Tuesday. The rally was principally backed by positive global cues. Further, PM’s speech at CII session acted as music to bulls’ ears as he said reforms undertaken during the lockdown will help the economy in the long-run and India’s economy would get back on track. At close, the Sensex rallied 522 points to 33,826 and the Nifty ended within the striking distance of its important psychological level of 10,000 as it soared 153 points. On the sectoral front, except for Nifty FMCG, all other sectoral indices ended in the green. Wherein, Nifty Realty, Nifty Media, Nifty Private Bank and Nifty Financial Services were top gainers. Keeping its pace with the frontline gauges, Nifty Mid-cap and Small-cap indices climbed 1.36 and 2.36 per cent respectively. The advance-decline ratio was skewed towards advancers.  Of 1,916 stocks traded, 1,375 advanced, 456 declined and 85 remain unchanged. 

In overnight trade, US equities extended their up-move, ending the day at their best levels of the day amid hopes of recovery followed by the economic reopening. The bullish sentiment is so strong that markets are ignoring a host of issues that should otherwise serve as a brake to bullish sentiments.   Dow and S&P 500 have reached to their best closing since early March and tech-heavy Nasdaq has recorded its best closing ever since February 20, 2020. Even European indices ended the day on a bullish note as market participants look forward to the European Central Bank’s monetary policy meeting scheduled on Thursday.

US Markets

Europe Markets

Commodity