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Indian stocks set for a flat opening as Asia opens mixed

By Vinu Lal

02:56, 25 November 2021

3D. Finance, Stock Market, Stock Exchange.
SGX Nifty trading up 0.06% – Photo: Shutterstock

Indian stocks look to open trade on Thursday morning on a flat note taking cues from SGX Nifty futures, which inched up 0.06% on morning trades. SGX Nifty, which represents Indian stocks in the Singapore Stock Exchange, had a marginal recovery from opening losses on Thursday morning even as investors were seen looking for directions after Wall Street indices also closed overnight on a flat note.

“Indian markets could open flat in line with rangebound Asian markets today and largely unchanged US markets on Wednesday,” said Deepak Jasani, head of retail research at HDFC Securities. Dow lose 0.1%, S&P 500 gained 0.2% while Nasdaq gained 0.4% on Wednesday.

Asian share markets, except Japan and Taiwan, were largely under pressure as investors responded to the Bank of Korea’s move to hike rates again, seeing faster inflation concerns. Jasani added that Asian stocks were range-bound on Thursday as traders weighed the US Federal Reserve minutes that flagged the risk of a faster reduction in stimulus to fight elevated inflation. 

“Nifty experienced selling around its resistance level of 17600. It closed at 17360, down by 145 points since yesterday’s close. Nifty is currently in a weak trend and it may test its support zone of 17200-17250 today. Any break below 17200 may cause a sharp fall in Nifty. Traders are suggested to exit long positions on a rally and not to initiate any new long positions till we see a closing above 17850 in Nifty,” said Gaurav Udani, chief executive of broking house ThincRedBlu Securities.

Key things to note before trade

  • Board of Reliance Industries to implement a ‘Scheme of Arrangement’ to transfer the ‘gasification’ businesses into a wholly-owned subsidiary 
  • Tata Steel commissioned an 8 million tonne iron ore crushing and washing plant in Odisha
  • Coal India plans INR400bn-500bn capital expenditure in the next 4-5 years
  • ICICI Bank, India’s largest private sector lender, raised INR35.95bn ($482.5m) through infrastructure bonds for the second time this financial year

Read more: Inflation persists in October as PCE pace hits 31-year high

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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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