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Indian stocks cautious and optimistic as Asia opens green

By Vinu Lal

03:04, 7 December 2021

Digital stock market indications with a background of night city lights
SGX Nifty futures mirrors Asian sentiments, up 0.17% in morning trade – Photo: Shutterstock

Indian stock markets are heading for a positive start, riding on Asian cues as indices across the globe recover from Omicron worries.

Key Asian regions including Hong Kong and Japan are trading in the green following Wall Street indices that closed higher on Monday as investors kicked off a rally on fresh hopes over the less-virulent Covid virus variant. Dow surged 1.87%, S&P 500 rallied 1.17% on Monday

SGX Nifty futures index, which represents Indian stocks, mirrored similar sentiments during Tuesday morning trades and was trading up 0.17% in Singapore.

“The short term trend of Nifty continues to be negative. The sharp downward reversal of the last two sessions after a decent pullback rally could open further decline down to 16700 or lower in the next few sessions. Any upside bounce from here could find strong resistance at 17080 levels,” said Nagaraj Shetti, technical research analyst at HDFC Securities.

Things to note before trade 

  • Tata Motors to hike prices of its commercial vehicles from 1 January to offset the rise in commodity and raw materials costs
  • HCL Technologies to create 12,000 new jobs in the United States, in the next five years
  • InterGlobe Aviation, which operates IndiGo airline, will convene a shareholders’ meeting on December 30 to amend the company’s Articles of Association (following a joint request from its owners
  • ITC ties up with a Swiss training partner for skill development in the Indian hospitality sector

Read More: India’s fertiliser subsidy may rise by bn on input costs

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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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