SGX Nifty surges 119 pts, Sensex, Nifty may open strong; key things to know before market opens

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August 02, 2021 8:35 AM

SGX Nifty surged higher in trade, gaining 119 points or 0.75 per cent at 15,893 on Singaporean Exchange.

sensex, nifty, stock marketAnalysts say current valuations, while not expensive demand consistent earnings delivery as compared to expectations for further outperformance. Image: Reuters

SGX Nifty surged higher in trade, gaining 119 points or 0.75 per cent at 15,893 on Singaporean Exchange. BSE Sensex and Nifty are set to a gap-up opening on Monday, following a week of losses. Last week, the 30-share BSE benchmark dipped 388.96 points or 0.73 per cent. A host of factors such as macroeconomic data, quarterly earnings, RBI MPC, pace of vaccination, auto sales numbers, the progress of monsoon, COVID-19 trends and other global trends will be keenly watched. Analysts say current valuations, while not expensive demand consistent earnings delivery as compared to expectations for further outperformance. “While the Index may be trading in a tight range, the gradual opening up of the economy and an improved demand backdrop do offer bottom-up opportunities,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Results today: Punjab National Bank (PNB), Varun Beverages, Housing Development Finance Corporation, Emami, Castrol India, Carborundum Universal, RBL Bank, CG Power and Industrial Solutions, Balaji Amines, Shree Renuka Sugars, Capri Global Capital, Orient Cement, Kalyani Steels and Nahar Spinning Mills, others will will announce their quarterly earnings on 2nd August.

Global watch: Asian stock markets were trading mostly higher on Monday. Japan’s Nikkei 225 jumped 1.58 per cent while the Topix index gained 1.74 per cent. The S&P/ASX 200 in Australia climbed 1.4 per cent. US stock market in overnight trade on Friday fell. The Dow Jones Industrial Average fell 0.42 per cent, the S&P 500 lost 0.54 per cent, and the Nasdaq Composite dropped 0.71 per cent.

FIIs turn net sellers in Indian share market: On Friday, foreign institutional investors (FIIs) sold shares worth Rs 3,848.31 crore, while domestic institutional investors (DIIs) lapped up shares worth Rs 2,956.68 crore on a net basis in the Indian equity market. so far in the ongoing financial year, FPIs pulled out a net Rs 6,105 crore from the Indian capital markets.

Robust rise in GST collection: Gross goods and services tax (GST) collections came in at an impressive Rs 1.16 lakh crore in July (largely June transactions), up a third on year and a quarter on month, reflecting a smart economic recovery after the second Covid-19 wave.

Technical talk: Analysts are of the view that the broader texture of the market is still in the bullish zone, but due to non-directional activity indices may consolidate in the range of 15600-15900/52000-53000 levels. “In the near future, the 15720/ 52500 level could act as a strong support level for traders and below the same correction wave is likely to continue up to 15600/52000. On the flip side, the 15900/53000 level should be the sacrosanct level for the bulls, above the same uptrend formation could continue up to 15960-16050 /53300-53550 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities, said.

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