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Saturday, May 21, 2022
Stocks & Shares

SGX Nifty indicates lower opening for stock markets

SGX

Growth stock areas of the market were under pressure as consumer discretionary shares and technology stocks were hurt by a rise in benchmark bond yields and the U.S. dollar

SGX Nifty indicates lower opening for the index, with a 37 points loss. The Nifty futures were trading at 16,231 on the Singaporean Exchange.

Indian markets could open flat to mildly lower, in line with largely rangebound Asian markets today and mixed US markets on Friday, said Deepak Jasani, Head-Retail Research, HDFC Securities.

Nifty may test its support of 16200 and 16150 soon , it is expected to open flat around Friday’s close. Nifty will face resistance in the 16,330-16,350 range , once this resistance is crossed Nifty may see levels of 16,400 and 16,450. Longs can keep holding their positions as long as Nifty holds 15,900 on closing basis. It is advised to exit longs below 15,900 on closing basis, said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.

Growth stock areas of the market were under pressure as consumer discretionary shares and technology stocks were hurt by a rise in long-dated benchmark bond yields and a rise in the U.S. dollar. For the week, the Dow advanced 0.8 percent, the S&P 500 added 0.9 percent, while the Nasdaq gained 1.1 percent.

Indian benchmark indices dropped on Aug 06 breaking a four day winning streak even after the Reserve Bank of India (RBI) kept the repo rates steady at its Monetary Policy Committee (MPC) meet and maintained an accommodative stance. The Nifty closed 56.4 points or 0.35% lower to 16238.

The Nifty dropped on Aug 06. However, the Nifty rose 3.0% over the week due to the gains in the early part of the week. However, Nifty Midcap 100 added 0.49% while Nifty Smallcap 100 index shed 0.78% over the week, reflecting the pressure on the broader markets.

Mohit Nigam, Head, PMS – Hem Securities, said markets are sensing a flattish opening after the strong breakout seen in the last week, as indicated by the SGX Nifty in the market opening time. Over the last week markets have broken up from the consolidation zone of 15,600 to 16,000. The breaking up from the zone has signalled further upside for the benchmark indices.

Among the stock specific actions, Axis bank being exposed to Future group companies to the tune of 648 crores might have a slight negative impact after the Supreme Court verdict on the latter. NIFTY50 stocks due to report earnings today include Shree Cement, MRF, Clean Science Energy and Jet Airways.

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