Stock Market Analysis and forecast for today
The Indian markets opened a subdued opening and traded between the positive and negative territory ahead of the August series’ expiry. In the second half of the trading session, the markets started gaining ground and gradually moved into the positive territory. All sector indices barring PSU and Banking stocks closed in the green; IT, Consumer Durables, Oil & Gas, Healthcare, Realty, Consumer Goods and Auto stocks outperformed the market. Some of the gainers / losers from the Sensex kitty were Tata Motors (7.10%), Wipro (3.86%), Reliance (2.51%), RCom (2.22%), Grasim Industries (2.04%), SBI (2.36%), BHEL (1.76%), Bharti Airtel (1.62%) and ICICI Bank (1.07%). The Sensex gained 59.72 points or 0.38% at 15,688.47. The Nifty added 16.55 points or 0.36% to close at 4,659.35. Total traded turnover stood at Rs 1,12,570 cr. In equities, FIIs were net sellers (Rs 259 cr) while DIIs were net buyers (Rs 437 cr). On the derivatives side, FIIs were net buyers in Index Futures (Rs 112 cr), Index Options (Rs 289 cr), while they were net sellers in Stock Futures (Rs 156 cr).
US stocks gained on Tuesday, extending the recent rally, after reports showed that consumer confidence and home prices are starting to recover. The Dow Jones industrial average gained 30.01 points, or 0.32% to finish at 9,539.29, while the Nasdaq closed higher by 6.25 points or 0.31% at 2,024.23.
Asian stocks rose buoyed by US data that strengthened hopes for an economic recovery although investors were cautious about pushing the index higher ahead of the 30th August elections in Japan. The Nikkei was up by 0.64% at mid-session while the Hang Seng is currently trading higher by 0.34%.
Displaying characteristics of strong trend, the markets rebound after a weak opening and closed higher. Midcap stocks, especially from IT sector, fared better than the others. Global cues favour continuation of the rally. Ahead of the August expiry tomorrow one can expect a lot more volatility. Expect Nifty to head towards 4,780 but use the rally to book profits and liquidate long positions.
