Nifty may open 100 points higher, indicates SGX

K. S. Badri Narayanan | | Updated on: Dec 08, 2021
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All eyes on RBI monetary policy statement

After remaining on the backstreet, bulls are likely to occupy centre stage at Dalal Street on Wednesday, amid strong global cues. SGX NIfty at 17,332 indicates a gap up opening of over 100 points for Nifty futures, which on Tuesday closed at 17,225. Thanks to a stellar recovery overnight at the US bourses, especially tech-focussed Nasdaq, most Asian bourses are up around one per cent, ignoring Chinese realty firm's Evergrande default threat.

All eyes are on RBI Monetary Policy outcome. Though most analysts expect status-quo stance, focus will be on the comments by the MPC.

"Markets are also discounting a dovish stance from the MPC as the outcome of the meeting is scheduled on Wednesday, December 8. We expect volatility to remain high in the first half so it’s prudent to restrict leveraged positions and wait for further clarity. For any sustained move, alignment between the Nifty and banking pack is critical," said Ajit Mishra, VP - Research, Religare Broking Ltd.

According to analysts, markets could still be in for further volatile condition amid the spread of omicron virus and resurfacing geopolitical tensions between Russia and Ukraine.

Tech and banking stocks will remain focus, said analysts.

Factors such as the Chinese central bank moving to loosen monetary policy and fears around the Omicron Covid-19 variant easing can help boost the domestic market sentiment, said Prashant Tapse, Vice President (Research), Mehta Equities

An early boost could take Nifty to its biggest hurdles at 17,489 mark. Above the same, a brighter trading week is quite likely as the buying madness will be on display that could drive Nifty towards the psychological 18,000 mark.

Published on December 08, 2021

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