Markets may continue previous day's short covering

Indian markets opened with a gap up in the wake of clearance of GST but failed to sustain and witnessed an intraday downfall. Finally both Nifty and Sensex closed flat at 8551 and 27714 levels. Broader markets outperformed with marginal gains of nearly 0.4 per cent. Realty sector refrained markets from falling with 2.4 per cent gains.
 
US markets closed almost flat, where investors remained vary of England’s decision to cut interest rates by 25 bps. Moreover, investors also awaited the jobs data in US which is expected to grow at a slower pace.
 
On the contrary European markets zoomed owing the same reason of Bank of England cutting its interest rate by 25 bps post BREXIT. DAX remained up by 0.57 per cent and CAC40 too closed up with 0.57 per cent gains. Moreover, FTSE100 jumped 1.59 per cent reporting its biggest jump since June.
 
Asian markets opened higher despite of a flat closure in the US. Bank of England’s biggest move of monetary easing for the first time after 2009 has boosted the sentiments. Japan’s Nikkei is positive with 0.18 per cent gains. Hang Seng has surged with 1.3 per cent upside. China’s Shanghai Composite remains flat to negative with 0.1 per cent losses. Australia’s S&P/ASX 200 index is 0.5 per cent up. New Zealand’s S&P/NZX 50 is 0.19 per cent up. South Korea’s KOSPI is 0.6 per cent up.

Indian markets tumbled but saw a recovery in last one hour and closed near its 20 days EMA support level of 8554. Moreover, SGX Nifty too is trading up with 0.54 per cent upside at 8651 levels.  Thereby markets may open on a positive note for short covering. Bharat Forge has its quarter results today which can be watched out.