Indian markets are ready for a positive start on Tuesday with the SGX Nifty
shows nearly a 1 percent jump in early trading. In
0828 hours, SGX Nifty rose 51 points, or 0.97 percent to 5316.Last week, the
Bombay Stock Exchange Sensex tests have been closed almost 1.5 per cent loss,
while the broader Nifty index shed 76.5 points.
According to analysts, this week was to be no different and the markets are
likely to move down from current levels.
Independent analyst Sarvendra Srivastava said markets are likely to re-test
the 200-day moving average (DMA), which is about 5400 Nifty. Nevertheless,
it remains a formidable resistance and the likelihood of repeat tests, the
absence of sufficiently high. "Rolling
back near 200 DMA gives you a good reward for the risk of a short stop-loss
market in 5400," Mr Srivastava said.
Asian stocks were mostly flat after a weak start. The
benchmark index in Japan - Nikkei 225 - fell slightly less than 0.25 per cent. Hong Kong's Hang
Seng index rose 0.5 percent. (Read:
Asian stock muffled loom as debt fears of Italy)Overnight, the Dow Jones index
in the U.S. rose 85 points, or 0.7 percent, to restore the 12 000 mark as
investors responded to the latest twists in the efforts of Europe to manage its
debt crisis. (Read:
Dow recovers 12 000 mark in the new initiative, Greece)
U.S. indexes were down for most of the day on fears that Italy could become
the next country that has faced difficulties. However,
stocks were higher on news that Greece will receive final payment of relief
until the two major parties in the country committed to the implementation of
economic reforms agreed with the previous government.
Fears that Italy could become the next victim of the debt crisis in Europe
kept investors uneasy.
Italy's borrowing rates spiked Monday to its highest level since the
country adopted the euro. Unlike
Greece, Portugal and Ireland - all of which have received financial life
support - In Italy, too much debt in order to escape from their European
neighbors. Italian
Prime Minister Silvio Berlusconi has dismissed suggestions that he resign to
make way for more cost reductions.
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