Sensex, Nifty may see flat opening on Thursday; these factors will set market tone for today

By: |
August 6, 2020 8:25 AM

Trends on SGX Nifty indicated that Sensex and Nifty may see flat to the negative opening on Thursday. Nifty Futures were trading 17.75 points or 0.16 per cent lower

Stock marketInvestors would watch out for the commentary and RBI decision post its MPC meeting

Domestic equity market benchmarks BSE Sensex and Nifty 50 likely to open flat on Thursday, as suggested by SGX Nifty. In the previous session, headline indices ended on a flattish note. Market participants will be tracking the Reserve Bank of India monetary policy committee meet outcome today. Besides, trends in coronavirus, corporate earnings and other global factors will sway investor sentiment. “Global cues were positive led by a batch of positive earnings. On the domestic front too, better than expected results season so far is driving the positive momentum, further aided by the liquidity. Investors would watch out for the commentary and RBI decision post its MPC meeting. The market might continue its positive movement, but we find the risk-reward unattractive with valuations at 21x one-year forward Nifty EPS,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

SGX Nifty flat: Trends on SGX Nifty indicated that Sensex and Nifty may see flat to the negative opening on Thursday. Nifty Futures were trading 17.75 points or 0.16 per cent lower at 11,114.20 on Singaporean Exchange.

RBI MPC outcome eyed: The Reserve Bank of India’s (RBI) monetary policy committee meeting which began on August 4, is scheduled to announce its decision today. Experts hold mixed views on whether the policy rates will be changed or not.

Corporate earnings: Lupin, Hindustan Petroleum Corporation Ltd, Adani Enterprises, Adani Power, Vodafone Idea, Apar Industries, BASF India, Bayer Cropscience, Blue Star, Dalmia Bharat, Deepak Nitrite, Embassy Office Parks REIT, Honeywell Automation, Indian Hotels, JK Tyre, Lemon Tree Hotels, Whirlpool of India, are among companies that scheduled to announce their quarterly earnings today.

FII and DII data: On Wednesday, foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 60.18 crore and Rs 425.98 crore, respectively, on a net basis, according to the provisional data available on the NSE.​

Global markets: Asian stock markets were trading mixed on Thursday. In Japan, the Nikkei 225 gained 0.32% in morning trade while the Topix index added 0.28%. Shares in Australia edged higher as the S&P/ASX 200 gained 0.72%. On Wall Street, US Stock indices rose after Disney delivered a surprise quarterly profit. Dow Jones Industrial Average was up 1.15 per cent, the S&P 500 was up 0.55 per cent, and the Nasdaq Composite was up 0.30 per cent.

Technical analysis: “The short term trend of Nifty continues to be positive. The volatility is expected to continue for the next session (RBI’s policy announcement). The outcome of this event is likely to ignite sharp intraday movement on either side. One may hold long positions with the stop loss of 10900 levels and a sustainable move above 11200-11225 levels is expected to pull Nifty towards 11350 in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

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