Trade Setup for Monday 21 Aug: Stock Market Today

August 21, 2023 admin

Trade setup for Monday 21 Aug 2023- Good morning and welcome to the morning reports, the top things to know before the stock market opens and ahead of Trade Setup today.

Asian Stock Markets

Asian stock market indexes are trading mixed on Monday, as China cuts Loan Prime Rates (LPR) for 1yr and left 5yr LPR unchanged. After last week’s surprise rate cut in the short and medium term, investors were expecting a rate cut in both 1 & 5 years LPR.

Nikkei and Kospi trimmed some early gains and are trading higher by 0.42 percent and 0.56 percent respectively. While Shanghai and Hang Seng are trading lower by 0.32 percent and 0.95 percent respectively. Straits Times is trading lower by 0.34 percent and Taiwan is trading higher by 0.18 percent at 7.15 am IST.

Gift Nifty is trading slightly lower by 10 points or 0.05 percent at 19319 levels. The indications getting from the Asian market are slightly negative today. Indian stock market indexes are likely to start on a cautious note and will trade negatively in most parts of the session.

U.S. Stock Market Indexes Update

The US stock markets closed mixed on Friday. Dow Jones closed slightly higher, up by 0.07 percent while S&P 500 ended flat to negative. The tech-heavy Nasdaq closed marginally lower by 0.20 percent on Friday. Traders remain cautious ahead of another round of economic data and US Fed chair Jerome Powell’s meeting at the Jackson Hole economic policy symposium this week.

The yield on a 10-year-old Treasury note hit a 10-month high at 4.328% on Thursday and closed lower at 4.253% on Friday. On the earning front, Keysight Technologies’ stocks closed lower by more than 13% due to disappointing quarterly earnings. Estee Lauder and Deere also 3% tofell5% respectively after downbeat quarterly earnings.

European Stock Market Indexes Updates

European stock market indexes ended lower on Friday, as China’s property sectors hit market sentiments, rising bond yields, and worst-than-expected UK retail sales data. China’s real estate giant Evergraned having a massive debt pile filed for Chapter 15 bankruptcy in the US, as it tried to organize a restructuring from creditors.

China exposure shares were under heavy selling pressure with mining falling the most followed by the retail sector. All major sectors closed in the red on Friday. However, the downside was limited, as the data from the European Union showed that the eurozone inflation slowed again in July.

The key European stock market index, CAC declined by 0.39 percent, while DAX and UK’s FTSE were down by 0.66 percent each on Friday.

Indian Stock Market Indexes

Indian stock markets trimmed most of their intraday losses on Friday and closed marginally lower on Friday. The domestic markets declined for the second straight session on weak global cues. However, the recovery was witnessed in the Reliance stocks in the last hour after it announced 21st Aug as the listing date for Jio Financial Services Ltd (JFSL).

A rally in Adani group stocks also encouraged some investors’ moods on Friday. The market breadth was slightly on the weaker side with the advance decline indicating a 3:4 ratio at the close. FIIs were the net sellers in the Indian equity cash segment, they offloaded shares worth Rs 266.98 crore while DIIs bought shares Rs 339.18 crore on Friday.

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Nifty and Bank Nifty Prediction for Monday 21 Aug 2023

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