Indian benchmark indices were likely to open higher today as the SGX Nifty gained 115 points or 0.73 per cent at 15,889.
On Friday, benchmark indices closed lower as investors booked profit in metal stocks amid negative global cues. Sensex ended 66 points lower at 52,586 and Nifty fell 15 points to 15,763. During the week, Sensex lost 0.73% or 389 points and Nifty fell 0.59% or 93 points.
Commenting on the outlook for Nifty, Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said, "The index is currently mid way within the short term range and is trading near its key hourly and daily moving averages. Nifty is expected to see a brief consolidation near 15,700-15,850 and then head toward 16,000 on the upside. From near-term perspective, 15,600 will continue to act as a crucial support on a closing basis."
Foreign institutional investors (FIIs) emerged as net sellers as they sold shares worth Rs 3,848 crore on July 30 and bought shares worth DIIs bought shares worth Rs 2,956 crore, as per provisional data available on the NSE.
Another analyst is positive on the outlook of the market.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said, "Broader texture of the market is still in the bullish zone, but due to non-directional activity indices may consolidate in the range of 15,600-15,900/52,000-53,000 levels. In the near future, the 15720/ 52500 level could act as a strong support level for traders and below the same correction, the 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."
Asian stocks and US equity futures climbed on Monday as some of the concerns over Covid-19 reopening disruption and China's regulatory crackdown eased, reported Bloomberg. Markets in Japan, South Korea and Australia stocks surged in early deals. Futures on the S&P 500 and Nasdaq 100 climbed, with a $550 billion infrastructure package getting closer to passage in the Senate this week.
US shares fell on Friday with the slide led by Amazon which reported its quarterly sales.
S&P 500 lost 23.89, or 0.5%, to 4,395.26. The Dow Jones Industrial Average fell 149.06, or 0.4%, to 34,935.47, and the Nasdaq composite dropped 105.59, or 0.7%, to 14,672.68.
Amazon share dropped 7.6%.
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