The Indian markets may see a flat to positive opening

The Indian markets may see a flat to positive opening. The SGX Nifty, which is currently trading almost 38 points higher, is reflecting that Nifty may open at around the 11,135 levels. However, the big question is whether the bulls will be able to build on early gains and end the losing streak, which has been witnessed recently. The continuous negative closing days are now six on Nifty. As history suggests, most of the downswings ended on the 7th or 8th day. Let’s wait and watch whether history will be repeated or not.

The Asian markets are under pressure in early deals on Wednesday following a sell-off on Wall Street overnight as investor sentiments was throttled amid growing uncertainty over the high-level trade negations between the world’s two largest economies set to commence later this week. Japan’s Index Nikkei 225 has lost 0.67 per cent and Hong Kong’s Hang Seng index has shed 0.16 per cent while China’s Shanghai Composite was hovering near the neutral line.

Back home, after opening the session on a positive note and extending their gains for the initial hour of trading, the key benchmark indices reversed early gains and continue to move in a prevailing corrective phase. As a result, the key equity benchmark extended its downfall for the sixth consecutive trading session on Monday. Nifty ended at 11,126, down by 0.43 per cent and BSE Sensex slipped 0.38 per cent. In the broader market, while Nifty Mid-Cap index performed in line with the frontline gauges, Nifty Small-Cap underperformed. On the sectoral front, Nifty Pharma ended the session as the top loser on the NSE followed by Nifty Metal and Nifty Realty. On the flipside, Nifty Media ended as top gainer.

The US stocks on Tuesday turned firmly lower and not surprisingly, trade relations between the US and China continues to be a major factor. Talks between the two nations are set to resume in Washington this week. However, the prospect of the US and China striking a trade were dimmed when the US administration announced that it was blacklisting 28 Chinese corporations and organisations from importing US’ technology. Further, adding fuel to the fire were the comments from Kristalina Georgieva, the new head of IMF, who said that the global economy has entered a ‘synchronised slowdown’, and that the IMF is likely to cut its growth estimates for this year and next. At the finale, the Dow closed a good 1.2 per cent below its previous close, while the S & P 500 was down 1.6 per cent. The worst hit was the technology-heavy Nasdaq which plummeted a big 1.7 per cent. European equity benchmarks too have followed their US counterparts and finished lower. UK Brexit concerns continued to ramp up ahead of the deadline of October 31, with the negotiations with the UK and European Union reportedly inching close to breaking down.