SGX Nifty hints Nifty to reclaim 11,800 mark at opening bell; 20-DMA to be centre of attraction

Despite a gloom & doom scenario in the global markets, the trends on SGX Nifty indicate a positive start for the index in India, as it trades higher by 39 points at 11,813 levels.

In the last trading session, Nifty closed below its prior week low and the market breadth slipped in favour of the bears. Now, all eyes would be on the 20-DMA (11,718), which is an important support level for the index in the near term and as long as Nifty stays above this level, the bull would stand a chance for a pullback. A close below 20-DMA would invite some serious selling pressure in the markets.

On the earnings front, over 35 companies are likely to announce their September quarterly results today, which include Amara Raja Batteries Limited (ARBL), Bharti Airtel and Tata Motors.  

Asian indices on Tuesday are trading with losses tracking a steep fall overnight on Wall Street. Hong Kong’s Hang Seng is down by 0.57 per cent, while Japan’s Nikkei 225 and China’s Shanghai Composite dipped 0.27 per cent and 0.12 per cent, respectively.

Indian markets ended sharply lower on Monday, tracking heavy losses in the index heavyweight, Reliance Industries, which plummeted nearly 4 per cent and it has to be one of the sharpest single-day falls in the percentage terms for the blue-eyed boy of D-Street in the recent times. Nifty and Sensex lost 1.36 per cent and 1.33 per cent, respectively. The broader indices too remained under pressure wherein, Nifty Mid-cap and Small-cap declined 1.71 per cent and 1.02 per cent, respectively. All sectoral indices ended in the red with Nifty Metal and Nifty Auto clocking the biggest loss. The volatility index, VIX too jumped 4.60 per cent and the market breadth favoured the decliners.

In the overnight development, the US stocks went down like ninepins and the biggest thorn in the flesh that saw the markets crack impulsively were soaring virus cases as well as the lack of a new fiscal relief bill in the US. Travel-related stocks felt the pinch as investors pressed the sell button on the back of concerns that the new restrictions could be imposed. Dow was the weakest amongst all the three major US stock market indices, followed by S&P 500 and Nasdaq. European indices too crashed on Monday as concerns continued about ballooning Coronavirus cases across the European region. Apart from this, further exacerbating the mood was the news of German business software giant SAP cutting its full-year guidance target as the company said that the Coronavirus lockdown would hit demand even into 2021.