An overnight rally in US stocks and a positive start to Asian markets — despite mixed economic data — may help domestic stocks post opening gains on Tuesday. But as technical charts are showing indecisiveness, it remains to be seen whether any such gains is sustained.
Here’s breaking down the pre-market actions.
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 76.50 points, or 0.75 per cent higher at 10,323.50, in signs that Dalal Street was headed for a positive start on Tuesday.
Tech view: Nifty forms Doji candle
Nifty50 on Monday closed almost at the same level where it had opened, and in the process formed a Doji candle on the daily chart for the second consecutive session. The back-to-back formation of such candles suggests investors are indecisive after the recent rally. A pause is likely, said analysts, who believe the recent swing low of 10,194 will act as immediate support for Nifty.
Asian stocks open higher
Hong Kong’s Hang Seng rose 0.69 per cent, or 166.96 points, to 24,468.24. China’s Shanghai Composite Index edged up 0.12 per cent, or 3.59 points, to 2,965.11. In Japan, the benchmark Nikkei 225 index gained 1.55 percent or 340.37 points to 22,335.41 in early trade while the broader Topix index was up 1.34 percent or 20.69 points at 1,569.91.
US stocks settled higher
US stocks finished noticeably higher, boosted by solid gains in Boeing shares. On Monday, the Dow Jones Industrial Average jumped 580.25 points, or 2.32 per cent, to 25,595.80. The S&P500 index was up 44.19 points, or 1.47 per cent, to 3,053.24. The Nasdaq Composite index increased 116.93 points, or 1.20 per cent, to 9,874.15.
Oil prices slip on weak Japan data
Oil prices fell in early trade on Tuesday after weak Japanese industrial production data, not usually a market-moving factor, was enough to