Markets may open positive, but are on tenterhooks

In the wake of immense volatility Indian markets closed on a flat note. The extreme movements in the heavyweight stocks drove the volatility. IT majors, HCLTECH and TCS surged more than 3 per cent while L&T and ICICI Bank tumbled more than 4 per cent post results. Nifty hit above 8700; while Sensex hit 28280, but failed to sustain the fresh 52 week highs.
 
US stocks closed on a negative note dragged down by energy sector that fell more than 3 per cent. US oil fell below 40 USD/barrel amid a supply glut and growing production. The fall in energy offset the positive movement in Healthcare and Technology stocks. Dow fell 0.2 per cent and S&P500 closed 0.1 per cent down. Nasdaq remained up with 0.4 per cent gains. WTI crude Sep16 futures traded at 40.19.
 
European markets opened marginally higher but the gains were washed off by falling banking stocks as investors remained vary of the stress-test results. The Germany’s main index DAX closed flat at -0.04 per cent while France’s CAC40 dropped by 0.69 per cent. Meanwhile Britain's FTSE too remained negative with marginal losses of 0.45 per cent.
 
Tracking weak closure in US, Asian markets remained negative. Reserve Bank of Australia has its policy review on Aug 02 and would decide whether to apply more stimulus into a low inflation and rising currency environment. The current rate is 1.75 per cent. Australia’s S&P/ASX 200 Index is negative at 0.2 per cent. Japan’s Nikkei retreated again and traded 0.6 per cent down. Hang Seng is absolutely flat. China’s Shanghai Composite is flat to negative with 0.1 per cent losses. New Zealand’s S&P/NZX 50 is flat to negative with 0.1 per cent losses. South Korea’s KOSPI is marginally down with 0.4% losses.
 
Indian markets may open on a flat to positive note following the recovery in the afternoon session but the optimism may not sustain as most other global indices remained negative. SGX Nifty is trading down with 0.16 per cent at 8693.