Market Likely To Open In Red

Indian equity market closed on a flat note on Monday after fluctuations for better part of the session, ahead of the expiry of derivative contracts in a holiday-shortened week. Weaker Asian markets also kept sentiment subdued, with commodity prices slumping again on the back of a rising dollar and worries about Chinese demand. The Sensex declined 49.15 points to 25819.34 and the Nifty ended tad below 7850, down 7.30 points to 7849.25. However, the BSE Midcap index gained 0.4% and Smallcap rose 0.5%.

U.S. stocks ended slightly lower on Monday, as investors appeared content to consolidate after big gains last week. Investors eyed fluctuations in oil prices and looked ahead to economic reports in the shortened Thanksgiving holiday week. The S&P 500 fell 2.58 points, or 0.1%, to settle at 2,086.59. The Dow Jones Industrial Average fell 31.13 points, or 0.2%, to 17,792.68. Meanwhile, the Nasdaq Composite slipped 2.44 points, or less than 0.1%, to close at 5,102.48.

U.S. oil prices fell Monday, erasing earlier gains, as concerns about rising crude inventories outweighed suggestions that Saudi Arabia might cut oil production in an effort to boost prices. U.S. crude settled down 15 cents, or 0.36%, at USD 41.75 a barrel after fluctuating between gains and losses. Brent rose 17 cents, or 0.4%, to USD 44.83 a barrel.

European equities traded lower on Monday with investors reacting to price fluctuations in the oil market. The Stoxx Europe 600 SXXP, -0.37%   dropped 0.4% to end at 380.37, as all sectors lost ground. The U.K.’s FTSE 100 which is sensitive to swings in the commodities sector fell 0.5% to 6,305.49, ending a five-day winning streak. France’s CAC 40 gave up 0.4% to end at 4,889.12 and Germany’s DAX 30 lost 0.3% to close at 11,092.31.

Asian equity markets opened mixed on Tuesday, following a lower finish from Wall Street overnight on the back of fluctuating oil prices. Japan’s NIKKEI 225 index slipped 0.2%. South Korea’s Kospi index traded 7.97 points, or 0.40%, higher in early trade and New Zealand’s S&P/NZX 50 Index added 0.37%. Australia’s S&P/ASX 200 Index lost its positive momentum as it opened 40 points, or 0.75%, lower at 5,237 as low commodity prices continued to drag, on concerns of slowing demand in China. China's Shanghai Composite was down 0.78% at 3,582.31.

A SGX Nifty 50 Index future for November delivery was up 35 points at 7,816. Indian market is likely to open in red due to weak global cues. However going forward we believe market may become volatile F&O expiry during the week.