Gift Nifty down 60 points; here's the trading setup for today's session
Nifty is currently just 40 points away from hitting the 21,000 mark.
«Markets saw a smart rally of 11% since the low of October end. Despite this sharp up-move, Nifty is trading at a 12-month forward P/E ratio of 18.4x, which is at a 9% discount vs its long-period average. Hence, we expect focus to shift towards the largecap stocks,» said Siddhartha Khemka, Head — Retail Research, Motilal Oswal.
Here's breaking down the pre-market actions:
STATE OF THE MARKETS
Gift Nifty signals negative start
Nifty futures on the Gift Nifty traded 56 points or 0.27% lower at 21,045.50, signalling a breather for the equity market bulls following a seven-day rally.
- Tech View: Considering the sharp runup in the previous few trading sessions, a consolidation is highly likely. On the upside, 21000-21060 shall act as an immediate hurdle zone, and 20800-20730 shall act as a crucial support zone, say experts.
- India VIX: India VIX, which is a measure of the fear in the markets, rose 2.1% to settle at 13.74 levels.
Shares in Asia fall
Equities in Asia mirrored weakness on Wall Street while Treasuries steadied following a rally after fresh data indicated labor market softness. Equities in Japan and Australia opened lower while futures contracts for Hong Kong benchmarks also slipped. That followed a third daily decline for the S&P 500.
- Hang Seng futures fell 0.2%
- Japan’s Topix fell 0.7%
- Australia’s S&P/ASX 200 fell 0.1%
- Euro Stoxx 50 futures rose 0.8%
US equities end lower
U.S. stocks ended down on Wednesday, pulled lower by megacaps and energy shares as signs of a cooling jobs market reinforced expectations that the Federal Reserve could start cutting interest rates early next year.
- S&P 500 declined 0.39%
- Nasdaq Composite Index
