Bulls likely to get back in the game

Indian markets have traded in a stipulated range for the majority part of the last week, could not prevent the downfall, as the bulls choked in the last trading session. Both, the Sensex as well as Nifty dropped below their crucial psychological level of 38,000 and 11,200.

However, despite this downfall, Nifty and Sensex registered a modest loss of 0.32 and 0.43 per cent. On the other hand, broader indices continued to outperform the benchmark as for the week Nifty Mid-Cap and Small-Cap gained 1.74 and 2.02 per cent, respectively.

Many were expecting the 'Monday Effect' to come into play for the markets, i.e. since markets were down on Friday it would resume its fall on Monday. Moving away from the predictability, the early trend in SGX Nifty is indicating that the markets are looking towards the fresh week on a positive note at the first trading session. At 7:45 am, SGX Nifty is trading with solid gains of over a per cent at 11,294.50 levels.  

Majority of the Asian markets have kicked off the week with a bullish tone. Hong Kong's Hang Seng is leading from the front as it has scaled 1.27 per cent and trading above the 25,500 mark and China's Shanghai Composite is within striking distance from its important level of 3,400 mark. Meanwhile, Japan's Nikkei 225 had lost 0.65 per cent as the recent incoming data revealed that the Japanese economy contracted more than what was anticipated in the second quarter.

Asian Markets

On Friday, the bears came out of their den and they arrived in their dominant style as the key benchmark indices registered a loss of over 1 per cent with Nifty and Sensex stumbled below their important psychological level of 11,200 and 38,000, respectively. In line with the frontline gauges, the broader indices too ended the day in red with Nifty Midcap and Small-Cap falling 0.86 per cent and 1.18 per cent, respectively. On the sectoral front, the majority of the sectors ended in red wherein Nifty PSU Bank, Nifty Auto and Nifty Bank were the worst hit, while Nifty Pharma and Nifty Metal ended as top gainers. Indian Volatility Index, India VIX surged 5.83 per cent to 21.67 levels.

Wall Street ended the final trading session of the week on a dull note with the Dow ending just above the neutral line, while the Nasdaq and the S&P 500 registered a modest decline. On the economic front, market participants were seen digesting a mixed set of data with the retail sales soaring less than expected in July, while on the other hand, Consumer Sentiment Index unexpectedly improved to 72.8. Meanwhile, the European markets were seen extending their previous day loss as the recent incoming data paint a gloomy picture as the Eurozone economy shrank 12.1 per cent in the second quarter.  

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