Nifty may open up tracking US rally on oil price gains

The Nifty is likely to open in the green on Monday as indicated by SGX Nifty that was trading 32.50 points higher at 7781.00.

Asian markets opened mixed this morning, The Nikkei 225 is up 0.39 percent while the Hang Seng gained 0.32 percent. The Shanghai Composite is off 1.62 percent.Kospi is playing catch up and has opened with a cut.

US markets closed higher on Friday, amid gains in oil prices and after the headline figure in the April employment report missed expectations. The US economy created 160,000 Jobs in April as unemployment rate steadied at 5 percent.

Europe, however, closed mostly in the red as the latest US jobs figure came in below expectations and a renewed downturn in commodity stocks and prices weighed on sentiment. The British FTSE and the German DAX ended the day close to 2 tenths of a percent higher the French CAC ended the day 4 tenths of a percent lower.

The dollar index rose against a basket of currencies after the head of the New York Federal Reserve, William Dudley, told the New York Times the US Central bank may raise interest rates twice in 2016 following weaker-than-expected April data on hiring.

Another key market mover is oil, prices rallying more than 2 percent at the start of Asia's trading session as supply outages persisted over the weekend from Canada's wildfires that have shut half the country's vast oil sands capacity.

Also, Saudi Arabia has replaced its long-time oil minister Ali al-Naimi with Khalid al-Falih, the chairman of Saudi Aramco, which analysts said signalled a new era for crude markets and appeared to be a reaffirmation of Saudi policy to let oil set its own pricing.

Gold too logged the biggest gain in a week following weakened case for an interest rate hike by the US Fed.