The wait continues for the bulls to cross above the 200-DMA that acted as a resistance, as markets failed to capitalize on it. This was despite a strong start in the last trading session. On Tuesday, early trends in SGX Nifty suggests that Indian markets are expected to open in red, mimicking the weak global cues. SGX Nifty at 7:50 AM is down by 48 points trading at 10,763.50. Having said that, as the day progresses the market would react to the macro and earnings. Today, a total of 35 corporate including big names like Wirpo and Mindtree are slated to announce their earnings.
Despite spectacular reversal on Wall Street in the last leg of trade, Asian indices were in red on Tuesday. The Hong Kong’s Hang Seng is down by 1.1 per cent and is the worst hit followed by Japan’s Nikkei 225 and China’s Shanghai Composite which is descended 0.77 per cent and 0.01 per cent, respectively.
Despite bouts of volatility, the key domestic benchmark indices ended the day with modest gains on Monday. Post gap-up opening, markets failed to capitalize on the strong opening gains. Further, it was a complete roller coaster ride as prior to ending the day with modest gains, markets briefly slid into negative terrain. Reliance Industries was major contributor to for the index as its fairy tale continued, marking yet another record closing high. At the closing bell, Nifty just managed to keep its head above 10,800 level, while Sensex closed tad below 37,000 level. A divergent trend was witnessed in the broader market as Nifty Mid-cap declined 0.18 per cent, whereas Nifty Small-cap added 0.09 per cent. On the sectoral front, mixed performance was persistent wherein Nifty IT, Nifty Metal and Nifty FMCG were top gainers. On the flipside, Nifty PSU Bank, Nifty Realty and Nifty Financial Services ended as top losers.
On Monday, a substantial turnaround of investors’ sentiments was seen on Wall Street. The day was started on an upbeat note amid news of two newly fast-tracked vaccine candidates. However, post California’s governor declaring the rollback of the state’s reopening due to a recent surge in coronavirus cases, the stocks took a deep dive. The tech-heavy Nasdaq lost over 2 per cent and was the worst hit. S&P 500 lost nearly a per cent, whereas Dow just managed to end the session with modest gains of 0.04 per cent. On account of news with respect to a possible COVID-19 vaccine, European indices ended the day higher.