SGX Nifty indicates fresh record highs on back of hopes for US stimulus breakthrough

Tuesday was all about the turnaround on D-Street as the key benchmark indices reversed their losses and eked out modest gains. In the current scenario, the bulls seem to have conditioned to buy a dip and there is no point in fighting the trend. The FIIs continued to pump money in the markets as they recorded net purchases of Rs 2,484.09 crore and with this, the total tally for the month to date stands at Rs 31,676.13 crore.

SGX Nifty in the early deals is indicating that the positive baton from Tuesday's trade is likely to be passed onto today’s trade on the back of merry global cues. SGX Nifty was trading higher by 60 points at 13,638 levels. If Nifty manages to sustain above the 13,600-13,650 levels, then a fresh spurt towards the upside is likely to happen which can take Nifty towards 13,840 levels in the medium term.

Asian Indices were seen advancing in the early trade on Wednesday, courtesy solid gains on Wall Street overnight amid renewed optimism that a bipartisan deal could be reached. Hong Kong’s Hang Seng surged 0.79 per cent, Japan’s Nikkei 225 added 0.30 per cent and China’s Shanghai Composite was flat.

Tuesday turned out to be a terrific day for the US stocks as the major indices climbed towards record high terrain. The optimism that the lawmakers would agree in due course on a new fiscal stimulus bill was a major catalyst. Further, Federal Reserve’s industrial production for November came in above the estimates which added to the positive sentiments. At close, Dow jumped 1.1 per cent to settle at 30,199, S&P 500 and the tech-heavy Nasdaq advanced 1.3 per cent each. Meanwhile, the majority of the European indices ended in the green, aided by optimism about US fiscal stimulus and additional progress on the development of several COVID-19 vaccines.