Pre-market: Nifty likely to open higher with a gap on first day of September series

NEW DELHI: The 50-share Nifty index is expected to open higher with a 100-point gap on Friday following positive trend seen in other Asian markets.

Tracking the momentum, the index may reclaim its crucial psychological level of 8050-8100 in trade on the first day of September series.

At 08:00 A.M., Nifty India stock futures in Singapore were trading 143 points higher at 8,136 indicating a gap-up opening on the domestic market.

The 50-share Nifty index slipped 6.8%, while Sensex plunged 6.7% in August series. On Thursday, the benchmark index staged a strong comeback and jumped 517 points, its biggest single day jump in two weeks, to reclaim the 26,000 mark, while Nifty rose 157 points.

"The Nifty exactly closed at that crucial resistance point, but having said that, some more upside is possible on Friday," says Sandeep Wagle, Founder & CEO, Power My Wealth. It may rally another 50-point, or maybe 100-point where one can go stock specific trade, he added.

"Is the bottom done and really go up one way towards 8200-8250? That I am not sure, I do not think so. I would still look at higher levels to create short position. I still do not believe that 7700 is bottom, maybe in short term yes, given some more time it would be broken, is still the view I maintain," added Wagle.

Overnight, Wall Street rallied more than 2 per cent as strong US economic data and hints that a September interest-rate hike was unlikely fueled optimism that the worst of recent market turmoil was over, said a Reuters report.

The Dow Jones industrial average scored its biggest two-day per centage gain since 2008, while the S&P 500 and Nasdaq Composite racked up their biggest two-day increases since 2009, added the report.

The Dow Jones industrial average 2.27 per cent to end at 16,654.77 and the S&P 500 jumped 2.43 per cent to 1,987.66. The Nasdaq Composite added 2.45 per cent to 4,812.71.

Japan's Nikkei 225 index which was trading 2.7 per cent higher at 19,087, Hong Kong's Hang Seng index was trading 0.82 per cent higher at 22,010, and China's Shanghai index was trading 2.2 per cent higher at 3154.21.