SGX Nifty suggests firm start for Sensex, Nifty; key things to know before opening bell
Overseas, Asian stocks traded mixed on Wednesday as investors reacted to the Reserve Bank of New Zealand's interest rate decision.
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 46 points at the opening bell. Overseas, Asian stocks traded mixed on Wednesday as investors reacted to the Reserve Bank of New Zealand’s interest rate decision. The Reserve Bank of New Zealand announced Wednesday that it would keep its monetary settings unchanged, leaving the official cash rate at 0.25%. In a release, the New Zealand central bank said the decision was “made in the context” of the government’s imposition of a nationwide lockdown. New Zealand Prime Minister Jacinda Ardern announced the lockdown on Wednesday following the discovery of a Covid case in Auckland.
Japan’s government on Tuesday decided to extend the Covid-19 state of emergency in Tokyo and other areas to September 12, as per reports. US stock indexes fell Tuesday as July retail sales declined and concerns about slowing global economic growth intensified. Spending at US retailers fell sharply in July, amid cooling purchases of goods and signs of some pullback in consumer demand as U.S. Covid-19 cases tied to the Delta variant rose.
Retail sales declined 1.1% in July, a reversal from June’s 0.7% increase, the Commerce Department reported Tuesday.
Domestic markets:
Back home, the main indices extended record closing spree on Tuesday, led by firmness in IT and FMCG shares. The barometer index, the S&P BSE Sensex, rose 209.69 points or 0.38% at 55,792.27. The Nifty 50 index gained 51.55 points or 0.31% to 16,614.60. Foreign portfolio investors (FPIs) sold shares worth Rs 343.73 crore, while domestic
institutional investors (DIIs), were net buyers to the tune of Rs 266.43 crore in the Indian equity market on 17 August, provisional data showed.
Market outlook
Rohit Singre, Senior Technical Analyst at LKP Securities said, “Nifty continued its northwards move for one more session on Tuesday as it managed to close a day on fresh high at 16,614 with gains of nearly half a per cent and formed a bullish candle on the daily chart. The index showed some selling pressure but again it managed to hold its bullish stream and witnessed a good pullback after retesting its strong support zone of 16,500 zone which hints going forwards also 16,500 will act as a good base and holding above said levels we may see the index to touch fresh highs 16700 zone in the near term.”