1 week ago
Asian Markets Rebound as Traders Assess Wednesday Stock Outlook
Asian stock markets mostly rose on Tuesday as technology shares recovered.
Japan's Nikkei and South Korea's KOSPI gained, while Hong Kong's Hang Seng changed very little.
Indian markets also moved slightly higher after investors bought shares late in the session.
Traders are waiting for Nvidia's earnings report because the company is important to the technology and artificial intelligence markets.
Investors are also watching US bond yields and possible signals about future interest rates.
The Nifty may move sharply on Wednesday because monthly futures and options contracts expire.
Analysts say the Nifty could rise if it stays above 24,130.
However, it may remain in a broad range if it cannot break above 24,360.
Bank Nifty is also expected to stay between support near 57,000 and resistance near 58,000 unless it breaks out.
Nikkei 225 and KOSPI rose as technology shares recovered, while Hang Seng was nearly unchanged.
Sensex and Nifty 50 edged higher after late-hour buying in Indian equities.
Markets are awaiting Nvidia's earnings report and signals on US interest rates and bond yields.
Analysts expect volatility in Nifty trading because of Wednesday's monthly F&O expiry.
Nifty support at 24,130 and resistance at 24,360 are key levels, while Bank Nifty remains range-bound between 57,000 and 58,000.
- Who
- Investors, traders, Nvidia, the Federal Reserve, and analysts from Bajaj Broking Research and LKP Securities.
- What
- Global and Indian markets are assessing their likely direction for Wednesday, 26 August, after Asian equities rebounded.
- Where
- The developments involve markets in India, Japan, South Korea, Hong Kong, mainland China, Australia, Taiwan, and the United States.
- When
- The market moves described occurred on Tuesday, ahead of Wednesday's trading session and Nvidia's earnings report.
- Why
- Technology shares recovered and bond-market pressure eased, while traders also awaited Nvidia's results, US economic data, Federal Reserve guidance, and India's monthly F&O expiry.
Potential Upside
Caution and Consolidation
Nifty direction
Potential Upside
Bajaj Broking Research said that holding above 24,130 could lead to a move toward 24,280 and 24,360, with a break above 24,360 potentially extending the pullback toward 24,600.
Caution and Consolidation
Failure to move above 24,360 could keep the Nifty consolidating in the 24,000-24,350 range.
Bank Nifty outlook
Potential Upside
A decisive breakout above the 58,000-58,200 resistance zone could determine a stronger upward move.
Caution and Consolidation
LKP Securities said Bank Nifty lacks clear directional conviction and advised a range-bound approach until a decisive breakout or breakdown.
Global technology sentiment
Potential Upside
The recovery in technology stocks and easing pressure from global bond yields supported a broader equity-market rally.
Caution and Consolidation
Nvidia's seven-session losing streak, elevated Treasury yields, sticky inflation, and concerns about widening fiscal deficits continued to pose risks.
Key facts
- Nikkei 225
- Rose 0.5% to 65,856.43; resistance is identified at 66,000 and support at 64,950.
- KOSPI
- Gained 0.7% to 6,742.74; resistance is identified at 6,800 and support at 6,470.
- Hang Seng
- Was nearly unchanged at 25,511.10; resistance is identified at 25,720 and support at 25,370.
- Nifty 50
- Analysts cited support at 24,130 and resistance at 24,360, with a possible pullback toward 24,280 if support holds.
- Bank Nifty
- The broader trading range was placed between 57,000 and 58,000, with resistance at 58,000-58,200.
- US stock futures
- S&P 500 futures rose 0.3% and Dow Jones Industrial Average futures rose 0.2% in pre-market trading.
- Nvidia
- The company was scheduled to report earnings on Wednesday and had fallen for seven consecutive sessions.
Sources
Related news
Sensex, Nifty, Asian Markets Face Key Levels on August 27
Sensex, Nifty, Bank Nifty Face Volatility as Asia Weakens
Sensex, Nifty Face Cautious Monday Outlook Amid Global Risks
Asian stocks slide as technology sell-off deepens before Nvidia earnings
Sensex, Nifty Face Cautious Monday Outlook Amid Global Cues
Markets Seen Opening Flat as Global Risk Appetite Weakens
Global Markets Turn Cautious as Oil and Tensions Rise
