Sensex, Nifty stare at gap-down opening on Tuesday; top factors that will guide markets today

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Published: July 7, 2020 8:22 AM

Apart from the global cues, the beginning of the Q1FY21 earnings season and macroeconomic data viz. IIP and CPI data will be the focus ahead

Sensex, NiftyWe believe more than earnings, management commentary will be crucial for the market participants

Extending the rally from previous sessions, domestic equity market benchmarks BSE Sensex and Nifty 50 continued their upward march to close at fourth-month highs. Sensex gained 465.86 points or 1.29 per cent to close at 36,847.28 whereas, the 50-share index Nifty was up by 156.3 points or 1.47 per cent to close at 10,763.65. Besides, initial signs of ease in tensions between India and China boosted investor sentiment. “Apart from the global cues, the beginning of the Q1FY21 earnings season and macroeconomic data viz. IIP and CPI data will be the focus ahead. We believe more than earnings, management commentary will be crucial for the market participants, to get a sense of the virus impact over the businesses,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

SGX Nifty signals negative start: Trends on SGX Nifty suggest a gap-down start for Sensex and Nifty on Tuesday. Nifty futures were trading 28.70 points or 0.27 per cent lower at 10,731.80 on Singaporean Exchange.

Global markets: Asian stock markets were trading mixed in early trade on Tuesday. Japan’s Nikkei 225 slipped 0.47% while the Topix index shed 0.42%. Overall, the MSCI Asia ex-Japan index traded 0.59% higher. In overnight trade on Wall Street, US stock indices rose sharply on a rebound in US services industry activity in June. The Dow Jones Industrial Average rose 1.78 per cent, the S&P 500 gained 1.59 per cent and the Nasdaq Composite added 2.21 per cent.

FII and DII data: On Monday, foreign institutional investors (FIIs) bought shares worth Rs 348.35 crore, while domestic institutional investors (DIIs) bought shares worth Rs 263.47 crore on a net basis, according to the provisional data available on the NSE.

India-China Galwan valley faceoff: Chinese Army has moved back tents, vehicles and troops by 1-2 km from locations where disengagement was agreed upon at Corps Commander level talks, news agency ANI reported quoting Indian Army sources.

Technical view: “Nifty witnessed another sharp up trended movement on Monday and closed the day on a smart upside gains of 156 points. A small positive candle was formed with gap up and with minor upper and lower shadow. Technically, this pattern indicates an uptrend continuation pattern. The short term trend of Nifty continues to be positive. Next upside targets to be watched 11250 in the next one week. Important support is placed at 10650,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

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