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Indian markets set to cheer Asian rally as Omicron fears ease

By Vinu Lal

03:05, 8 December 2021

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SGX Nifty futures in Singapore open firm – Photo: Shutterstock

Indian stock markets are poised to sustain their momentum on Wednesday as investors across Asia began trading strongly with renewed vigour, disregarding concerns about the new Covid variant.

“The sharp upside bounce of Tuesday could cheer bulls to make a comeback from the lows. But, the present upside bounce could be short-lived and one may expect selling pressure to emerge from the crucial overhead resistance of 17550-17600 levels in the near term,” said Nagaraj Shetti, technical research analyst, HDFC Securities.

SGX Nifty futures, which represent Indian stocks in the Singapore Stock Exchange, opened trade firmly on Wednesday morning and was 0.17% up on similar sentiments.

“The up move in markets shouldn’t be attributed to the Covid-related update alone, said Ajit Mishra, VP-research, Religare Broking.


20.56 Price
-0.390% 1D Chg, %
Long position overnight fee -0.0020%
Short position overnight fee -0.0062%
Overnight fee time 22:00 (UTC)
Spread 0.026


1.10 Price
+0.140% 1D Chg, %
Long position overnight fee 0.0000%
Short position overnight fee 0.0000%
Overnight fee time 22:00 (UTC)
Spread 0.00900


7.77 Price
+0.150% 1D Chg, %
Long position overnight fee 0.0054%
Short position overnight fee -0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00873


28.39 Price
+0.680% 1D Chg, %
Long position overnight fee -0.0090%
Short position overnight fee 0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.0312

“Markets are also discounting a dovish stance from the monetary policy committee (that determines Indian interest rates) as the outcome of the meeting is scheduled on Wednesday. We expect volatility to remain high in the first half so it’s prudent to restrict leveraged positions and wait for further clarity,” Mishra added.

Wall Street indices closed Tuesday’s session with strong gains as investors regained their risk appetite from easing fears of Omicron as technology stocks delivered strong gains. Dow Jones surged 1.40%, S&P 500 rallied 2.07% while Nasdaq advanced 3.03% on Tuesday.

Things to note before trade

  • Reliance Industries to partner with Abu Dhabi chemicals derivatives company RSC and invest $2bn (INR150.7bn) for a petrochemical production facility in the United Arab Emirates.
  • Real-estate developer Shriram Properties, part of Shriram Group, will begin public subscription today which will conclude on December 10.
  • Nestle India received approval from the government for the production-linked incentive scheme for processed fruits and vegetables.
  • Vedanta group firm Hindustan Zinc has approved an interim dividend of INR18 per share for the financial year 2021-22, worth INR76.05bn.

Read More: Indian shares rebound ahead of central bank rate decision

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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