Keep your fingers crossed for a positive opening!
DSIJ Intelligence-3Categories: Pre Morning, Trending
Today, the market participants would be surprised to see that SGX Nifty is indicating a flat to positive start for the domestic markets despite that US stocks witnessed its biggest point drop ever. The reason is that Dow Futures trading in green and also that the Asian peers have trimmed their early losses and are in a recovery mode.
Today, the market participants would be surprised to see that SGX Nifty is indicating a flat to positive start for the domestic markets despite that US stocks witnessed its biggest point drop ever. The reason is that Dow Futures trading in green and also that the Asian peers have trimmed their early losses and are in a recovery mode. SGX suggests Nifty to open around 9,150 levels with gains of 47 points. For Nifty, very crucial support level is placed in the zone of 8,900-9,000. Fibonacci retracement of 61.8 per cent, which is considered as a golden ratio, is placed at 8,967 levels of the entire upswing from 6,825 to 12,430.
Asian markets were trading in red on Tuesday after the stocks on Wall Street suffered its worst day in more than three decades. Hong Kong’s Hang Seng is down by 1.06 per cent, Japan’s Nikkei 225 has slid 0.84 per cent and China’s Shanghai Composite has dropped 0.71 per cent, respectively.
Back home, after witnessing scintillating recovery in the prior trading session, the markets returned to bear mode on Monday despite US Federal Reserve announcing another emergency rate cut and brought down interest rates to near zero. Meanwhile, WPI inflation for February came in at 2.26 per cent compared to 3.10 per cent in January. Nifty plunged 7.61 per cent to end at 9,197 and BSE Sensex dropped 7.96 per cent to 31,390-level. In the broader market, Nifty Mid-cap and Small-cap declined 6.25 and 6.41 per cent, respectively. On the sectoral front, the pain was felt all over, with Nifty Metal, Nifty Private Bank, Nifty Realty, Nifty Bank and Nifty Financial Services being the top decliners. India VIX jumped further 16 per cent to close at 58.88-mark.
In overnight developments, US markets were again solidly lower; triggering yet another temporarily halt after the markets slammed into circuit breakers. The steps taken by Fed are unable to calm the markets. However, as markets resumed trading, the fall only enlarged amid sharpest drop in the regional manufacturing activity in New York since 2009. At the close, Dow plunged 12.9 per cent, Nasdaq fell 12.3 per cent and S&P 500 crumbled 11.9 per cent. European stocks also plunged in Monday’s session with the key benchmark indices revisiting multi-year lows.