SGX Nifty indicates muted start for D-Street

The bulls have been marching higher, recording higher closing for the last three trading sessions. However, in the last leg of trade on Monday, bulls ran out of the steam. This came post fear of the second wave of coronavirus, especially in the US and China. Said that, market participants preferred to take profits of the table.

On Tuesday, the early trends in SGX Nifty is directing towards a muted start for the Indian markets.  At 7:42 AM, SGX Nifty was seen trading marginally above the dotted line at 10,334 levels.  

Overall, the structure of the markets looks decent as we have seen participants across the board in the recent rise. Hence, ‘buy on dips’ would preferably be the theme for the day. Also, it is advisable not to fight the tape as long as Nifty does not slip below the prior bar’s low.  

On back of concerns about a second wave of coronavirus infections, notably in the world’s two largest economies i.e. US and China, is keeping the market participants on the sidelines. Despite a strong close on Wall Street overnight, majority of the Asian indices were seen struggling on Tuesday.  The worst affected is China’s Shanghai Composite followed by Hong Kong’s Hang Seng drowning 0.42 per cent and 0.41 per cent respectively. On the other hand, Japan’s Nikkei 225 recovered from lower levels and is trading with modest gains.

Asian Markets

On Monday, bulls on D-Street extended their winning streak for the third consecutive trading session. However, in the end as bulls run out of steam, markets trimmed some of its gains.  At the closing bell, Nifty added 0.65 per cent to close above 10,300 mark and Sensex advanced 0.52 per cent to end at 34,911. The broader markets outperformed the frontline gauges with Nifty Mid-cap and Nifty Small-cap indices soaring 1.59 per cent and 2.31 per cent respectively. On the sectoral front, except for Nifty IT, all other indices ended in green with Nifty PSU Bank, Nifty Metal, Nifty Pharma and Nifty Media registering themselves as top gainers. The market breadth was also skewed strongly towards advancing side.

The tech-heavy Nasdaq recorded a new closing high, extending its run for the seventh straight session. This led stocks on Wall Street to begin the week in positive territory. Dow and S&P 500 also recorded decent gains with Dow reclaiming its 26,000 mark and S&P settling above 3,100 mark. On economic front, existing homes sales in May misses the forecasts. On flipside, amid recent spike in new coronavirus cases globally, European markets ended the first trading session of the week on a negative note.

US Markets

Europe Markets

Commodity