Markets may extend rally on upbeat mood
Indian equity markets are poised to extend rally on Wednesday, after Wall Street ended higher in overnight trade and positive trading across Asian markets. The bullish trend in the SGX Nifty, which was trading higher by 13 points at 9,309, indicated that domestic bourses may witness a gap-up opening.
Nifty50 closed above 9,300 for the first time ever. The momentum is likely to continue for the index and Nifty50 index may face resistance in the zone of 9,340-9,365. On the downside, immediate support is seen at the level of 9,270 and the next support at the level of 9,200.
Back home, strong global cues and excellent results by the index heavyweight Reliance Industries set up a cheerful start for Indian markets on Tuesday. As the session progressed, buying momentum extended and Nifty conquered the important psychological level of 9,300.
Wall Street extended its rally on Tuesday, with the Dow Jones soaring by a triple-digit figure and the Nasdaq ending the session above important psychological mark of 6,000 for the first time ever, as investor cheered upbeat earnings and the possibility of corporate tax cuts. The Dow Jones Industrial Average advanced 232 points to 20,996. The Nasdaq Composite Index gained 42 points to 6,025. The S&P 500 gained 14 points at 2,389.
Asian markets are trading with positive sentiments on Wednesday after US markets rallied overnight on upbeat corporate earnings and tax reforms optimism. The Japan’s Nikkei 225 has risen 133 points. Hong Kong’s Hang Seng has advanced 107 points. China’s Shanghai Composite is trading with gains of 4 points.