Another freaky Friday on cards for India markets, Nifty may give up 11,500 as US stocks tumble

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Updated: Sep 04, 2020 8:30 AM

Trends on SGX Nifty suggested a gap-down opening for Sensex and Nifty on Friday. Nifty Futures were trading 111 points or 0.96 per cent down at 11,439.20 on Singaporean Exchange.

Sensex, NiftyThe market may look forward for more positive signs of economic recovery and would track the development around the US stimulus announcement

Domestic equity market benchmarks BSE Sensex and Nifty 50 are staring at a negative opening on Friday after US markets marked their deepest one-day fall since June. Market participants will continue to keep tabs on India-China tensions, trends in COVID-19 cases, oil prices and movement in the rupee. In the previous session, the headline indices ended with losses, where Sensex gave up its crucial 39,000-mark, while the broader markets outshined the equity benchmarks. “The market may look forward for more positive signs of economic recovery and would track the development around the US stimulus announcement. Investors will also keep a close watch on India-China border tensions and global markets for cues,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

SGX Nifty down 1%: Trends on SGX Nifty suggested a gap-down opening for Sensex and Nifty on Friday. Nifty Futures were trading 111 points or 0.96 per cent down at 11,439.20 on Singaporean Exchange.

RIL-Silver Lake deal: Silver Lake is in talks to invest about $1bn in Mukesh Ambani’s Reliance Retail at a valuation of roughly $57bn as the Silicon Valley private equity group seeks to deepen its ties with India’s richest man, Financial Times cited people with direct knowledge of the matter.

FII and DII data: On Thursday, foreign institutional investors (FIIs) bought shares worth Rs 7.72 crore, while domestic institutional investors (DIIs) too bought shares worth Rs 120.08 crore on a net basis, according to the provisional data available on the NSE.

Results today: A total of 68 companies including National Aluminium Company, Future Retail, Goodyear India, Jubilant Life Sciences, NLC India, Repco Home Finance, RattanIndia Infrastructure, RattanIndia Power and Simbhaoli Sugars, are scheduled to announce their quarterly earnings.

FM asks banks to roll out loan recast: Finance minister Nirmala Sitharaman asked banks to put in place a board-approved policy for a one-time restructuring of loans, identify eligible borrowers and roll out resolution schemes latest by September 15.

Global markets: Asia’s stock markets slipped in early trade on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6% while Japan’s Nikkei dropped 1.3%. The three major indices of US markets ended sharply lower in overnight trade. The Dow Jones Industrial Average fell 2.78%, the S&P 500 lost 3.51%, and the Nasdaq Composite dropped 4.96%.

Technical observation: “The short term trend of Nifty remains choppy with minor positive bias. There is a possibility of similar range movement with positive bias in the next 1-2 sessions. Immediate resistance to be watched at 11600 and the short term lower support is placed at 11450,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

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