image

business forward

Indian stock markets to open lower today - Capital.com

Apprehensions surrounding rising Omicron infections in the sub-continent are expected to weigh down on the Indian stock markets, which seem to be headed for a weak opening on Monday.

The Nifty 50 Futures Index, listed on the Singapore Exchange, was trading 0.22 lower to 16,960.50 points at 08:29 hours Indian time (UTC+5:30) on Monday, suggesting that Dalal Street will open in the red.

Stick to “low beta stocks”

“As we step into the last week of the calendar year, it is also a week of monthly derivatives expiry,” said Gemstone Equity Research and Advisory Services chief analyst Milan Vaishnav.

“Apart from this, major global markets on holiday will impact the participation in the domestic markets as well due to the lack of any meaningful cues...Monday is likely to see a quiet start for the day. The levels of 17,085 and 17,140 as immediate resistance points for the markets. The supports come in at the16,960 and 16,880 levels.

“...we will also not see any major directional up move unless the NIFTY moves past the 17,150-17,200 (points) zone convincingly. Until the markets move past this zone, it is strongly recommended to keep exposures at modest levels while keeping purchases limited to defensive and low beta stocks,” Vaishnav wrote in a note to clients, published on his firm’s website.

Things to note prior to trade

Indian vaccine manufacturer Bharat Biotech is scouting for global partners to produce and sell an intranasal anti-Covid-19 spray. The Hyderabad-based firm, which sells Covaxin, hopes to produce a billion doses of its BBV154 vaccine in 2022, according to a report in the Business Standard.

The so called non-invasive vaccine is undergoing trials in the country. “The nasal route has excellent potential for vaccination due to the organized immune systems of the nasal mucosa”, according to the company’s website.

Mumbai-based HP Adhesives will start trading on the bourses today. The counter “will be in Trade-for-Trade segment for 10 trading days”, according to a 24 December BSE notice.

Indices ended higher last week

Indian stocks completed weekly gains, closing high on Christmas eve, after concerns over rising Omicron cases worldwide were assuaged by positive macroeconomic data from the US.

The Bombay Stock Exchange’s 30-share Sensitive Index, or Sensex, ended 2.3% higher at 57,147.63 points from its previous close a week ago. The most-traded National Stock Exchange’s Nifty50 index closed at 17,008 points or 2.3% stronger from its close a week ago.

Read more: European banks give Indian infrastructure a $600m-plus boost

Rate this article

Rate this article:

Ready to get started?

Capital.com Download

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.

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.