Trends indicate positive opening for indiceswritten by Bella Palmer
Asian shares started the week with gains in the early Monday trade with Chinese markets up by 1.1 percent
Trends on SGX Nifty indicate a positive opening for the index in India with an 86-points gain. The Nifty futures were trading at 16,811 on the Singaporean Exchange.
Wall Street rallied on Friday, pushing the S&P and the Nasdaq to record closing highs for the fourth time this week, as US Federal Reserve Chairman Jerome Powell's remarks at the Jackson Hole Symposium soothed worries over the tapering timeline and sent investors into the weekend in a buying mood.
The Dow Jones Industrial Average (DJIA) gained 242.68 points, or 0.69 percent, to 35,455.8, the S&P 500 added 39.37 points, or 0.88 percent, to 4,509.37 and the Nasdaq Composite advanced 183.69 points, or 1.23 percent, to 15,129.50.
The Nifty is expected to open around 16,610 up by 100 points. 16,825 to 16,850 will act as a resistance zone for Nifty while 16,700 to 16,720 will act as a support zone. Nifty has been rising in lower volumes therefore there is a possibility of a minor correction. Buy on dips can be a good strategy for the current markets, said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
Mohit Nigam, Head-PMS at Hem Securities, said, stock specific actions can be witnessed in stocks such as Bharti Airtel (Plans to raise up to Rs 21,000 crore through a rights share issue), Cipla (University of Iceland sue Cipla to block Nayzilam copies), M&M (The Ministry of Defence has awarded a contract worth Rs 1,349.95 crore to Mahindra Defence Systems), Nazara Technologies (Acquired 100 percent stake in Hyderabad-based skill gaming company OpenPlay Technologies). On the technical front, 16,650 and 16,900 are immediate support and resistance in Nifty 50.
Asian shares started the week with gains in the early Monday trade with Chinese markets up by 1.1 percent.
The dollar was not far off two-week lows after US Federal Reserve Chairman Jerome Powell struck a more dovish tone than expected.
Soon after the bell, Japan's Nikkei gained 0.9 percent, and MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.32 percent in early trading before Chinese markets had opened. Australia jumped 0.39 percent and Korea's Kospi added 0.54 percent.
The US economic recovery is on track to return to a strong labour market, and the central bank could begin to withdraw its stimulus measures by year-end, Federal Reserve Chair Jerome Powell said Friday. But the Fed leader stressed that there was no hurry to raise the benchmark lending rate in response to temporary inflation pressures.
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