Markets may open flat but will remain positive for the day

Stock markets declined for the second day in a row due to lack of momentum and closed marginally down. Nifty closed at 8624; while Sensex retained 28000 mark. IT sector dragged the markets down. Broader markets outperformed with 0.5 per cent plus gains.

US markets recovered from prior losses digesting the minutes of July FED meet. All the major indices closed flat to positive where Dow, S&P500 and Nasdaq gained 0.12 per cent, 0.19 per cent and 0.03 per cent respectively. The rise in US Crude prices by 0.45 per cent at 46.79 USD/barrel supported the recovery.

European markets closed in red ahead of the FED July minutes with a fear of interest rate hike anytime in near future. DAX dipped 1.3 per cent and CAC40 closed 0.96 per cent down. FTSE100 tumbled 0.5 per cent despite of decrease in its July jobless claims by 8600.

Asian markets opened higher tracking positive closing in the US. However now the markets are trading mix where Japan’s Nikkei 225 is marginally down with 0.36 per cent losses. Hang Seng is 1.37 per cent up. China’s Shanghai Composite remains flat. Australia’s S&P/ASX 200 Index 0.47 per cent down. New Zealand’s S&P/NZX 50 is marginally up with 0.23 per cent gains. South Korea’s KOSPI is also 0.23 per cent up.

SGX Nifty is trading marginally up at 8654 levels. Indian benchmark indices may open flat but see some positive movement during the day tracking global cues. Nifty has taken a 20 days EMA support at 8592 which may support optimism.