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    Pre-market: Nifty seen opening higher; may reclaim 8100 levels

    Synopsis

    At 07:30 a.m., Nifty India stock futures in Singapore were trading 89 point higher at 8,133.50 indicating a gap-up opening on the domestic market.

    ET Online
    NEW DELHI: The 50-share Nifty index is expected to open higher on Thursday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 8,100 in trade today.

    At 07:30 a.m., Nifty India stock futures in Singapore were trading 89 point higher at 8,133.50 indicating a gap-up opening on the domestic market.

    Indian markets would remain buoyant after the long-delayed goods and services tax (GST) got Union Cabinet nod late on Wednesday. The bill is likely to be introduced in Parliament on Thursday and the government hopes to roll out GST on April 1, 2016.

    Nifty managed to bounce back from its panic low of 7,961 hit in trade to conclude the day with a loss of 37 points at 8029. The Sensex lost another 71 points and closed at 26710 on Wednesday.

    Nifty has been trending lower in a declining channel since past seven to eight sessions and changed the angle of descent on Wednesday, after it failed to take support around its crucial level of 8050-60 range.

    "The immediate term trend continues to appear weak for Nifty as long as it now trades below the level of 8080 and the index may test 7915 which is the 78.60% FR of the previous advance from 7723 till 8623," GEPL Capital said in a report.

    "Only if Nifty manages to clear the resistance of 8080 would it indicate an attempt to form a bottom. A counter trend upside would now be confirmed if the index moves past 8125," added the report.

    Sentiments dampened further after Indian rupee fell to 13-month low against the dollar as the brewing financial crisis in Russia continued to raise concerns about foreign fund outflows.

    "We expect index to undergo in consolidation phase after the recent fall prior to next directional move," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

    "On the other hand, stocks would continue to trade volatile with bias slightly on the negative side so we advise to avoid high beta counters and be strict to your risk management rules," he adds.

    Overnight, US stocks ended higher after the Federal Reserve gave an upbeat assessment of the U.S. economy and said it would take a patient approach toward raising interest rates.

    Following a two-day meeting, the U.S. central bank gave a strong signal that it was on track to raise interest rates sometime next year, Reuters reported.

    "The Fed said it would take a "patient" approach in deciding when to bump borrowing costs higher, which Fed Chair Janet Yellen, at a news conference, defined as "at least a couple of meetings."," added the report.

    The Dow Jones industrial average rose 288 points, or 1.69 per cent, to 17,356.87, while the S&P 500 gained 40.15 points, or 2.04 percent - its biggest daily percentage rise since October 2013 - to 2,012.89. The Nasdaq Composite added 96.48 points, or 2.12 percent, to 4,644.31.

    Asian shares were trading higher. Japan's Nikkei 225 index which was trading 0.57 per cent higher at 16,850, Hong Kong's Hang Seng index was trading 0.26 per cent lower at 22,612 and China's Shanghai index was trading 0.07 per cent higher at 3,022.



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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 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 .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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