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Pre-market: Nifty seen opening higher; may reclaim 8250 levels

The 50-share Nifty index is expected to open higher on Tuesday following positive trend seen in SGX Nifty.

, ET Online|
Last Updated: Dec 30, 2014, 08.03 AM IST
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 The 50-share Nifty index is expected to open higher on Tuesday following positive trend seen in SGX Nifty.
 The 50-share Nifty index is expected to open higher on Tuesday following positive trend seen in SGX Nifty.
NEW DELHI: The 50-share Nifty index is expected to open higher on Tuesday following positive trend seen in SGX Nifty. However, the index may later pare gains and trade in a range around its crucial psychological level of 8250, tracking muted trend seen in other Asian markets.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 28.50 points higher at 8,346 indicating a positive opening on the domestic market.

The S&P BSE Sensex extended gains for second straight session and closed 154 points higher, while the Nifty ended at 8,246.30, up 45.60 points on Monday.

Among the sectoral indices, auto and consumer durables gained more than a per cent each alongside with recovery in metal space, which helped index to end with the decent gains.

"We uphold our view to maintain stock specific approach till consolidation continues in the benchmark index. In addition, traders are advised to keep balanced approach at current juncture and remember that the overall uptrend is still intact," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"They may choose stocks from banking, media and auto space for long trades while further rebound in metal, realty and energy can be considered for initiating short positions," he adds.

Nifty managed to respect the support level of 8170 and resumed its bounce. In the immediate term, the same level of 8170 continues to remain as a key support.

"If Nifty sustains above this level then we may expect a test of 8300 and beyond that 8365 is possible in coming sew sessions," brokerage firm, GEPL Capital said in a report.

"Though, 8365 is a minor resistance for the index, it may likely be surpassed and Nifty may test 8480 in coming weeks," added the report.

The brokerage firm is of the view that only a breach of 8170 would be a sign of weakness in which case it may correct till the next support of 8100.

Overnight, US markets ended flat even as the S&P 500 notched its latest record high, but gains were curbed when an early rally in energy prices lost momentum.

"Equities have trended to the upside of late, buoyed by data showing an improving economy and the U.S. Federal Reserve's commitment to be "patient" about raising interest rates," Reuters reported.

The Dow Jones industrial average fell 15.48 points, or 0.09 percent, to 18,038.23, the S&P 500 gained 1.8 points, or 0.09 percent, to 2,090.57 and the Nasdaq Composite added 0.05 points to 4,806.91.

Asian markets were trading mixed, as a sharp selloff in commodities and political uncertainty in Greece made investors less willing to take risks in the final trading days of 2014.

"Activity was thin ahead of the New Year holiday, with many traders having closed out positions. Japanese markets will be shut from Wednesday to Friday, reopening next Monday," said the Reuters report.

Greek Prime Minister Antonis Samaras failed to get enough support for his presidential nominee on Monday, and will call a national election for Jan. 25, it added.

Japan's Nikkei 225 index which was trading 0.8 per cent lower at 17590, Hong Kong's Hang Seng index was trading 0.06 per cent lower at 23,761 and China's Shanghai index was trading 0.12 per cent higher at 3,172.

(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
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