Indian stock markets expected to open higher today
03:03, 22 December 2021
Wall Street’s robust gains and mostly higher Asian shares are expected to support the Indian stock markets, which seem to be headed for a positive opening on Wednesday.
The Nifty 50 Futures index, listed on the Singapore Exchange, was trading 0.18% higher to 16,859 points at 08:16 hours Indian time (UTC+5:30) on Wednesday, suggesting that Dalal Street will open in the green.
Avoid aggressive positions
“Wednesday is likely to see a stable start to the day; the levels of 16,830 and 16,900 (points) are likely to act as strong resistance points; the supports come in at 16,700 and 16,630 levels,” according to Gemstone Equity Research and Advisory Services chief analyst Milan Vaishnav.
“…The most immediate resistance for the markets on the higher side will be the 20-DMA which presently stands at 17,195 (points). This makes the zone of 17,200-17,350 a stiff resistance zone if the technical pullback in the markets continues. We recommend staying away from creating aggressive positions on either side; while staying extremely selective, a continued cautious approach is advised for the day,” Vaishnav wrote in a note to clients, published on his firm’s website.
Things to note prior to trade
Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises (ZEEL) have inked definitive agreements to merge ZEEL with SPNI and combine their linear networks, digital assets, production operations and programme libraries.
Footwear retailer Metro Brands will commence trading on the bourses on Wednesday. Prior to its initial share sale, the Mumbai-based firm raised INR4.1bn ($54.14m) from 28 anchor investors, according to an exchange update.
Private sector lender YES Bank’s board of directors have decided to raise funds to the tune of INR100bn ($1.32bn). The bank told the bourses that the move is subject to approvals from shareholders and regulators.
The National Stock Exchange (NSE) has rolled out a new corporate governance initiative, named NSE Prime. Additional disclosure requirements are prescribed under the new framework, to provide for higher quality of public information and greater transparency. Listed companies that voluntarily choose to be part of NSE Prime will need to comply with pre-defined norms on an ongoing basis, which will be monitored by the NSE.
Key US indices ended higher
US benchmarks closed higher Tuesday after President Joe Biden announced new actions to check rising Omicron cases in the country.
The Dow Jones Industrial Average added 560.54 points, or 1.6%, to 35,492.70, the S&P 500 advanced 1.8% to 4,649.23, while the Nasdaq Composite jumped 3% to 15,341.09. The small-cap benchmark Russell 2000 improved 2.4%, notching its best day since July.