Markets to open slightly positive ahead of weekly Bank Nifty expiry - Highlight Investment Research

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Thursday, 24 January 2019

Markets to open slightly positive ahead of weekly Bank Nifty expiry

SGX Nifty is at 10865, up 24 points. For today, we expect more earnings to dictate the short term trend; however, the appointment of Piyush Goyal as interim Finance Minister may see sentiment improve as he is pro-market and could see better news in the interim budget.

On Wednesday, Nifty saw a very volatile session after the strong rally it lost steam in last hour to close sharply lower, as foreign investors turned sellers. FMCG, PSU banks, and financial services stocks took a beating as the Nifty saw ITC lead the fall after results fell below estimates as margins declined.

Global Markets: Asian indices opened to muted trade as volatility rises after the superb start to the New Year as investors turn cautious. US indices swing to the Chinese outlook, while earnings surprises on the upside, which sees huge intraday swings in the US markets. For today, we expect consolidation as markets adjust after the strong rally and await more clarity on US shutdown and trade talks.

US Markets: Dow Jones whipsaws traders with almost 600 point intraday swings before closing up 175 points. Oil sees the lowest level in this month as China indicates a visible threat of slow down. Bond yields also fell along with the dollar, however, the Brazilian Bovespa hits fresh all-time highs as emerging markets lead equity rebound.









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