SGX Nifty indicates positive opening; PSU Bank stocks-PNB & Bank of Baroda witness huge open interest addition
The unabated journey continued for the Indian markets on Tuesday as well with both the indices, Sensex & Nifty logging fresh record highs. However, it was a tough row to hoe for the bulls as extinct bears fought their heart to gain supremacy but all in vain as the recovery in the second half of the trading session once again provided an advantage to the bulls. It was the big boys of D-Street, who came to the party and helped the indices to recover. However, it was Nifty PSU Bank Index, which was the hero of Tuesday’s session as the index soared more than 7 per cent and moved at lightning speed.
In the PSU Banks, PNB and Bank of Baroda saw long build-up as PNB (December 31) Future contract witnessed an addition of about 29 per cent open interest, followed by Bank of Baroda Future contract, which added nearly 12 per cent open interest. The blue-eyed boy of D-Street i.e. Reliance Industries saw the addition of nearly 4.5 per cent in open interest.
The momentum, which the bulls gained in the second half of the trading session, is likely to continue on Wednesday, aided by the bullish sentiment seen across the global market. SGX Nifty trades at 13,462 levels, up by 47 points. If Nifty manages to sustain above the prior session high of 13,435, it would negate the bearish implication of the Doji pattern. And, if it does so, it would be again a big heartbreak for the bear camp.
Asian stocks are mostly up on Wednesday, aided by a strong close overnight on Wall Street as the major indices closed at record highs. Japan’s Nikkei 225 jumped 1.02 per cent as the sentiment remained buoyant on the back of Japanese core machine orders data. Hong Kong’s Hang Seng has surged 1.22 per cent and now, the index trades above the 26,600 mark. China’s Shanghai Composite was seen oscillating near the neutral line.
US stocks began Tuesday’s session on a soft note; however, as the day progressed, the bulls picked up momentum amid the recent COVID-19 vaccine development and hopes of a fiscal stimulus. As a result, all three major stock indices closed at fresh record highs. Dow added 0.4 per cent, S&P 500 rose 0.3 per cent and Nasdaq advanced 0.5 per cent. The stock of electric-vehicle maker, Tesla hogged the limelight as the company announced its plans for a $5 billion equity offering.
On the economic front, small business buoyancy tapered off more than estimates in November. Meanwhile, the European indices ended the session on a mixed note.