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Pre-market: Nifty seen opening higher; may reclaim 8600 levels

Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8,600 levels.

, ET Online|
Last Updated: Dec 05, 2014, 07.50 AM IST
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Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8,600 levels.
Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8,600 levels.
NEW DELHI: The 50-share Nifty index is expected to open higher on Friday, following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 8,600 levels.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 16 point higher at 8,616 indicating a positive opening on the domestic market.

Nifty ended the day with a gain of 26 points at 8564, while the Sensex was up by 120 points at 28562 on Thursday.

Immediate support for the index has now moved higher to 8500 and as long as the index sustains above the level of 8500 - the trend would continue to remain positive and the index may scale higher till 8650 to 8700 range.

"However, in an alternate scenario if the index breaches the support level of 8500 then we may witness some decline till 8450-40 range below which 8420 is a very important support to watch out for," GEPL Capital said in a report.

"Only if 8420 is breached then that may serve as an indication of short term weakness," added the report.

Markets moved in a range for the third successive session and managed to close marginally in green; supported by gain in FMCG stocks. Though, the gains remained capped as investors preferred to book profit in index majors on every rise.

"We reiterate our advice to uphold buy on dips approach and utilize this corrective phase to participate in the prevailing uptrend," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"Traders can choose stocks from banking, FMCG and Infra pack for fresh buying while metal counters may continue to trade under pressure," he adds.

Overnight, US stocks ended flat after the European Central Bank President Mario Draghi brushed off pressure for more immediate monetary policy action but said the issue would be addressed early next year.

Draghi said the ECB would reassess the impact of its stimulus early in 2015 and take further action if necessary, but didn't mention a specific timeline, Reuters reported.

The ECB met under growing pressure to prevent the bloc's economy from entering recession. The bank has already cut borrowing costs to record lows, given cheap loans to banks, and started buying debt to kick-start lending and bolster growth, added the report.

The Dow Jones industrial average fell 12.52 points, or 0.07 per cent, to 17,900.1, the S&P 500 lost 2.41 points, or 0.12 per cent, to 2,071.92 and the Nasdaq Composite dropped 5.04 points, or 0.11 per cent, to 4,769.44.
Asian shares were trading higher. Japan's Nikkei 225 index which was trading 0.28 per cent lower at 17,838 and Hong Kong's Hang Seng index was trading 1 per cent higher at 24,059. China's Shanghai index was trading 0.83 per cent higher at 2,921.

(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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