Despite markets losing close to a per cent on the Futures & Options (F&O) expiry day, the July series ended with gains of almost 868 points or 8.47 per cent. Early trends in SGX Nifty suggests that the first trading session of the August F&O series is likely to begin with optimism. At 7:45 AM, SGX Nifty is trading with gains of 0.57 per cent at 11,147.50 level.
Having said that, the rollover F&O contracts in Nifty were less than three months and Six months average. This indicates that the traders are not yet convinced about the continuation of the trend. Moreover, the US Gross Domestic Product (GDP) in the June quarter showed a sharp contraction of 32.9 per cent. Further, the weekend factor could lead traders avoid to any long positions.
Index heavyweight Reliance Industries released its quarterly numbers yesterday, post market hours. Hence, it is expected that the market participants might initially react on its quarterly earnings. Nifty’s crucial support is placed around 11,050 and breaching down of this level could push index towards its 200-DMA.
Today on the earnings front, stocks such as SBI, Sun Pharma, Tata Motors, Tata Chemicals and UPL are likely to report their quarterly earnings.
Following the mixed closed on Wall Street overnight, Asian indices are signaling mixed cues in early trades on Friday. On concerns over rising coronavirus cases across Japan, Nikkei 225 tumbled more than a per cent. Meanwhile, China’s Shanghai Composite and Hong Kong’s Hang Seng advanced by 1.29 per cent and 0.88 per cent, respectively.
As domestic benchmark indices slid nearly one per cent, it ended the July series with disappointment. At the day’s beginning, it looked like on a jubilant note, markets might reclaim its recent swing highs. However, in the second half, markets witnessed selling pressure and ended the day lower. At closing bell, Nifty and Sensex were down at 11,102 and 37,736, respectively. Even the broader indices ended in red with Nifty Mid-cap and Nifty Small-cap drowning 0.83 per cent and 1.07 per cent, respectively. On the sectoral front, apart from defensive sectors like Nifty Pharma and Nifty IT, all other sectoral indices ended in red. Nifty Private Bank and Nifty Bank were the top losers.
On Thursday, in the early part of the trading session, the US stocks fell sharply amid an alarming plunge in Q2 GDP and upswing in unemployment claims. However, stocks trimmed their losses by reverting from lower levels. Tech-heavy Nasdaq Composite ended its day with gains of 0.43 per cent post a strong rally in the big 4 tech companies - Apple, Amazon, Facebook and Google. Meanwhile, European indices ended sharply lower as market participants digested a slew of economic data. Germany’s GDP tumbles most in the second quarter since 1970. Further, it was worse than forecasted, sending shiver down the spine of market participants.