Stock market today LIVE Updates: Markets to open on positive note; SGX Nifty trading with gains of 1.50% suggests relief

09:08 (IST)

Markets to open positive

Aditya Agarwala, Senior Technical Analyst, YES Securities said: “The Indian markets are slated for a positive start following a massive sell off in the previous trading session. SGX Nifty is currently trading with gains of 1.50% or 145 points suggesting a relief rally in today’s session.

“Early risers in Asia are also trading in the green and gains are led by JAKARTA, STRAIT and HANGSENG markets which are trading higher by 0.80%-0.50%. 

“Coming back to Indian markets, if bulls successfully defend the 9300 support level in today’s trading session a short covering rally can materialise taking the Index higher to levels of 9450-9560. On the flip side if bears keep the pressure on by maintaining the Index below 9400 then a renewed corrective wave could be witnessed in the later half of the trading session. Traders should also keep a close watch on the VIX which had spiked 27% in yesterday’s session, continued rise in VIX can keep markets under pressure,” Agarwala said.

09:06 (IST)

Markets could open high

Deepak Jasani, Head Of Research, HDFC Securities said: “A late recovery in US markets led by tech shares could result in higher opening for our markets.  Indian markets could open higher today following positive Asian markets today and US markets that reversed up to close up on Monday. US stocks staged a dramatic comeback late Monday to end higher, as U.S. crude oil settled above $20 a barrel and tensions simmered between China and the US over Beijing’s handling of the coronavirus outbreak. At session lows, the S&P 500 was down 1.2% and the Dow was 1.5% lower. Wall Street rebounded as the lifting of lockdowns in some U.S. states boosted optimism.

“West Texas Intermediate crude oil for June delivery scored a gain Monday, adding 61 cents, or 3.1%, to settle at $20.39 a barrel on the NYME​ In economic data, US. factory orders sank 10.3% in March, and orders for long-lasting goods slumped 14.7%.

Stocks in Asia Pacific rose in Tuesday morning trade, with major markets regionally closed for holidays. A late Wall Street rally has led Asian stocks higher on Tuesday after tech shares and oil rose on easing coronavirus restrictions and prospects of an economic recovery, overcoming concerns about renewed Sino-US trade tensions. 

“Indian equity indices broke a 4 day winning streak on Monday and recorded their biggest one-day fall in over a month reflecting the weakness in global markets over the last two trading sessions. Weak global cues, poor macro data locally, the latest US China spat and poor corporate earnings led to this fall. The NSE Nifty 50 index gave up half of the gains made during the previous week, ending at 9,293, down 5.7 percent.

“Technically the Nifty has given a bearish signal by forming a bearish island reversal pattern after a rise. The next support to look forward to is at 9132, while the resistances are at 9392 and 9533. The ultimate target of the bearish pattern is at 8909.

Stock market today LIVE Updates: Markets to open on positive note; SGX Nifty trading with gains of 1.50% suggests relief

New York: A late Wall Street rally is expected to lead Asian stocks higher on Tuesday after tech shares and oil rose on easing coronavirus restrictions and prospects of an economic recovery, overcoming concerns about renewed Sino-US trade tensions.

Futures on major US, Hong Kong and Australian indexes were up about 0.3 percent in early Asia trade after major Wall Street indexes ended up Monday. The tech-heavy Nasdaq Composite closed up 1.2 percent.

Oil rose as much as 5 percent as countries announced they would began easing coronavirus lockdowns and crude supply cuts took effect.

The upturn for stocks came on more optimistic statements from the governors of California and New York for reopening businesses. Andrew Cuomo of New York on Monday outlined a phased reopening in the US state hardest hit by the COVID-19 pandemic.

Representational image. Reuters.

“Can you lift restrictions and begin to phase in economic activity and yet keep the number of cases at bay? That is what the market is focused on right now,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

Early on Tuesday trading in Asia, futures for the S&P 500 were up 0.1 percent and the Australian S&P/ASX 200 futures were up 0.32 percent. Hong Kong’s Hang Seng index futures rose 0.24 percent. Japan and mainland China markets are closed for public holidays.

The Australian dollar fell 0.02 percent versus the greenback at $0.643.

The shift in sentiment came too late for European stocks with the pan-European STOXX 600 ending 2.7 percent lower. There were also concerns about declines in manufacturing in Europe and the US.

MSCI’s gauge of stocks across the globe shed 0.69 percent on Monday. Emerging market stocks lost 3.14 percent.

The Dow Jones Industrial Average rose 0.11 percent on Monday while the S&P 500 gained 0.42 percent.

The S&P 500 rise was powered by Microsoft, Apple and Amazon. Their strength overcame drops in airline shares of between 5 percent to 8 percent after legendary investor Warren Buffett said his Berkshire Hathaway had sold its carrier holdings.

US crude was up 3.87 percent at $21.18 per barrel and Brent was at $27.97, up 5.79 percent on the day. “The market continues to price in the idea that things are improving,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

Still, an ambivalence about countervailing forces dominated in the US Treasury market. Heavy corporate debt issuance weighed on bond prices after an early round of safe-haven buying and left the yield on 10-year USTreasury notes barely changed at 0.63 percent compared with 0.64 percent late on Friday.

“To me that really speaks to…a deep lack of conviction over what comes next,” said Jon Hill, an interest rate strategist at BMO Capital Markets in New York.

The US dollar index rose 0.258 percent, and the euro was down 0.03 percent to $1.0903. Spot gold added 0.1% to $1,701.44 an ounce.

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