Pre-market: Nifty50 may open higher, see resistance at 8,000
Nifty50 futures on the Singapore Stock Exchange were trading 12.50 points higher at 7997.50, indicating a gap-up opening in the domestic market.
By Amit Mudgill, ET Online | Updated:
NEW DELHI: Domestic equity benchmarks are likely to open on a positive note on Wednesday, taking cues from positive trading in Asian markets and over 1 per cent gains in the US stocks in overnight trade. While no major economic event is scheduled for the day, all eyes will be on the developments in the winter session of Parliament. Investors would also be looking forward to the ECB’s policy review on Thursday and the Opec summit on Friday.
After clocking its worst monthly return since August in November, the market began December on a positive note, even as the Reserve Bank of India (RBI) kept its policy rate unchanged at 6.75 per cent. Experts believe the 8,000 level would offer strong resistance to the Nifty50 in the near future.
At 07:45 am, Nifty50 futures on the Singapore Stock Exchange were trading 12.50 points higher at 7997.50, indicating a gap-up opening in the domestic market.
For minute-by-minute market/stock updates, follow our Twitter handle @ETMarkets
"As far as Nifty50 is concerned I do not have a very clear directional call. I would stick with my previous move, which is bullish. But as the index approaches 8,000-8,010, for me, that is a very strong resistance zone. I would like to watch whether we cross that. If we manage to clear that hurdle, then we may see another 100-150 points rally, nothing beyond that,” said Sandeep Wagle of PowerMy Wealth.
Data available with the NSDL showed foreign portfolio investors (FPIs) remained net sellers to the tune of Rs 1,918 crore on Tuesday. Yet the benchmark indices ended the day in the black. The Nifty50 added 19.65 points to settle at 7,954.90 for the day.
Some experts expect the indices to trade in a narrow range on Wednesday.
"For me, 7,900 is the revised stop loss for the Nifty50. If the index breaks below that, I think even on the stocks side, we should look at paring down our long exposure. We could even initiate some shorts as 7,750, which would be the target in such a case. Overall, I think it is a market which is very narrow and subdued,” said Mitesh Thacker, Technical Analyst, miteshthacker.com
Most Asian markets were trading sideways. Japanese equity benchmark Nikkei traded 0.16 per cent lower at 19,981. China’s Shanghai Composite was ruling 0.13 per cent higher at 3460.80.
Other Asian indices, including Hong Kong's Hang Seng (up 0.30 per cent), South Korea's Kospi (down 0.18 per cent) and Taiwan's TWSE (up 0.30 per cent) were trading mixed.
The S&P 500 index in the US market closed 1.07 per cent higher at 2,102.63 on Tuesday. The US manufacturing sector contracted last month to its weakest level since June 2009, while construction spend rose in October to the highest level since December 2007, data showed on Tuesday.
Investors were focused on Friday's November jobs data, which is expected to influence the timing for the first US interest rate hike since 2006, a Reuters report said.
After clocking its worst monthly return since August in November, the market began December on a positive note, even as the Reserve Bank of India (RBI) kept its policy rate unchanged at 6.75 per cent. Experts believe the 8,000 level would offer strong resistance to the Nifty50 in the near future.
At 07:45 am, Nifty50 futures on the Singapore Stock Exchange were trading 12.50 points higher at 7997.50, indicating a gap-up opening in the domestic market.
For minute-by-minute market/stock updates, follow our Twitter handle @ETMarkets
"As far as Nifty50 is concerned I do not have a very clear directional call. I would stick with my previous move, which is bullish. But as the index approaches 8,000-8,010, for me, that is a very strong resistance zone. I would like to watch whether we cross that. If we manage to clear that hurdle, then we may see another 100-150 points rally, nothing beyond that,” said Sandeep Wagle of PowerMy Wealth.
Data available with the NSDL showed foreign portfolio investors (FPIs) remained net sellers to the tune of Rs 1,918 crore on Tuesday. Yet the benchmark indices ended the day in the black. The Nifty50 added 19.65 points to settle at 7,954.90 for the day.
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Some experts expect the indices to trade in a narrow range on Wednesday.
"For me, 7,900 is the revised stop loss for the Nifty50. If the index breaks below that, I think even on the stocks side, we should look at paring down our long exposure. We could even initiate some shorts as 7,750, which would be the target in such a case. Overall, I think it is a market which is very narrow and subdued,” said Mitesh Thacker, Technical Analyst, miteshthacker.com
Most Asian markets were trading sideways. Japanese equity benchmark Nikkei traded 0.16 per cent lower at 19,981. China’s Shanghai Composite was ruling 0.13 per cent higher at 3460.80.
Other Asian indices, including Hong Kong's Hang Seng (up 0.30 per cent), South Korea's Kospi (down 0.18 per cent) and Taiwan's TWSE (up 0.30 per cent) were trading mixed.
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The S&P 500 index in the US market closed 1.07 per cent higher at 2,102.63 on Tuesday. The US manufacturing sector contracted last month to its weakest level since June 2009, while construction spend rose in October to the highest level since December 2007, data showed on Tuesday.
Investors were focused on Friday's November jobs data, which is expected to influence the timing for the first US interest rate hike since 2006, a Reuters report said.
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