Sensex, Nifty stare at a muted opening; US-China tension, rising coronavirus cases to be in focus

By: |
August 10, 2020 8:25 AM

Asian equity markets started the week down in the red. Shanghai Composite along with Hang Seng were trading with losses.

Stock marketThe number of cases of the coronavirus has been increasing in India with over 22 lakh cases recorded so far.

Domestic benchmark indices Sensex and Nifty stare at a muted opening to this week’s trading session following weaker global cues. After a week that saw both Sensex and Nifty gain close to 2% each, rising global tensions and increasing number of coronavirus cases is expected to be in focus this week. However, the United States is expected to unveil a stimulus package soon. The ripple down effect of the same could flow into Indian equity markets helping the share markets to gain. Banking stocks are also to remain in focus after the Reserve Bank of India allowed restructuring of stressed assets.

Global cues: Asian equity markets started the week down in the red. Shanghai Composite along with Hang Seng were trading with losses. They were followed by stock markets in Japan and Malaysia. However, equity markets in Taiwan and South Korea were seen trading higher with gains. Except the Nasdaq, all US indices ended last week with gains. 

AGR dues hearing: The Supreme Court will once again hear the Adjusted Gross Revenue dues payment case. Although the apex court has not given a time-line for the verdict, it could announce the same today. Vodafone Idea and Bharti Airtel have asked for a staggered timeline of payment which would give them plenty of time to secure funds and pay the dues. 

US China tensions: President Donald Trump has banned US transactions with Chinese apps, WeChat and Tiktok. A retaliation from the Chinese could be on the cards, according to analysts. 

Defence stocks: India has decided to give local manufacturing of defence equipment a massive push. Banning a number of items that India imported as it looks to find substitutes from local manufacturers. Defence stocks will be in focus.

Coronavirus Cases: The number of cases of the coronavirus has been increasing in India with over 22 lakh cases recorded so far. Of this over 15 lakh have recovered but the pace of growth has not slowed down in India. 

Technical view: “If the Nifty crosses the 11260 level, aggressive traders would buy the market. Resistance can be seen at 11350 and 11500 while Nifty may get support at 11100 and 11000,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

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