Sensex, Nifty sit at 7-month highs, but will Donald Trump ending stimulus talk play spoilsport?

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Updated: Oct 07, 2020 8:50 AM

The Nifty is at the highest it has been since February 26, and above the key resistance levels of 11,580 and 11,620.

Reliance industries, hpcl, vodafone idea, wiproNifty futures were trading 20 points down at 11,645 on Singaporean Exchange in the early deals, suggesting a tepid opening for BSE Sensex and Nifty 50 on Friday

With Sensex having gained over 600 points in the last session and the Nifty 50 ending at a 7 month high, domestic stock markets seem to be in buoyant mood. The Nifty ended at the highest it has been since February 26, and above the key resistance levels of 11,580 and 11,620. “The initial overhead resistance of the down trend line and also a previous swing high of September 16 has been surpassed on the upside around 11550-11620 levels on Tuesday and Nifty closed above it. We now observe three back to back unfilled opening upside gaps in the last three sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

With the recent upward swing that equity markets have witnessed, technical analysts believe that bulls are firmly in control. “The immediate support for the Nifty is now placed around 11560 and 11520 whereas resistance is seen in the range of 11750-11800,” said Ruchit Jain Senior Analyst – Technical and Derivatives, Angel Broking. However, global cues seem mixed on Wednesday morning. Stock markets in the US ended down after US President Donald Trump brought talks around a stimulus package to a close.

Global watch: Stock markets in the US ended in the red on Tuesday. S&P 500 dropped 1.4% while NASDAQ slipped 1.57% and Dow Jones was down 1.34%. European share markets ended in the green. Asian stock markets were mixed on Monday. Hang Seng was up with gains while TOPIX and Nikkei 225 were down in the red. 

Trump ends stimulus talk: US President Donald Trump, on Tuesday, said that he is halting stimulus talks till after the Presidential elections. The move comes just after Federal Reserve chairman Jerome Powell said that without a stimulus the US economy’s recovery would falter.

FII and DII flows: Foreing Institutional Investors (FII) were again net buyers of domestic stocks on Tuesday, pumping in Rs 1,101 crore into stocks. Domestic Institutional Investors (DII) sold stocks worth Rs 934 crore. This was the third session straight on FIIs buying stocks.

Bulk and Block deals: Vanguard Moderate Growth Fund bought over 58 lakh shares of Zee Entertainment Enterprises at Rs 211.46 per share through a Bulk deal on Tuesday. LTS Investment Fund sold 1 lakh shares of LKP finance through a bulk deal. 

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