Markets may open positive following strong cues from Asian peers

The strength visible in Asian peers and SGX Nifty is signaling that Nifty may open around 11,800 mark and we expect the bulls to continue their upward march at the opening bell. But the question remains whether Nifty spot market will touch its record high level and trade in the uncharted territory. It looks possible as long as Nifty manages to hold above the previous session low of 11,655. 

Majority of the Asian indices are trading in the green on Wednesday as market participants look forward on the progress of the US-China trade talks that are set to continue in Washington. The Japanese stock market Nikkei has surged 0.51 per cent and Hong Kong’s Hang Seng index has advanced 0.40 per cent.

Back home, key benchmark indices extended their rally on Tuesday with Nifty closing above the 11,700 mark and BSE Sensex closing above the 39,000 mark. The indices started the session on a positive note and, thereafter, they traded in a capped range. Some bouts of volatility were seen during the mid-session, but in the last leg of trading, the bulls clearly dominated. The broader markets underperformed the benchmark indices, with the Nifty Midcap closing flat, while the Nifty Smallcap ending marginally lower by 0.21 per cent. The sectoral indices exhibited a mixed trend, with Nifty Realty and Nifty PSU Bank ending as top gainers, while Nifty Media and Nifty Pharma emerging top losers.

The US markets ended Tuesday’s session on a mixed note. The Dow Industrial Average slipped 0.30 per cent, weighed down by weak earnings reports from Walgreens Boos Alliance, while the tech-heavy Nasdaq Composite index added 0.25 per cent and the S&P 500 index closed almost unchanged.

The European indices closed Tuesday’s session in the positive terrain, shrugging off Brexit uncertainty and ignoring report that the UK construction output remained contracted for the second straight month. The France’s CAC 40 ended with gain of 0.33 per cent, the DAX of Germany rose 0.62 per cent and the UK’s FTSE 100 surged 1.01 per cent.