Markets may open flat to negative; Tata Motors to be eyed

The day of August F&O expiry witnessed a sell-off in the markets where the benchmark indices almost engulfed the previous two sessions’ recovery. Nifty closed below 8600 mark at 8592; while Sensex closed at 27836 shedding 225 points. Weak global cues added to the sentiments.

US markets closed flat after the lackluster movement where the decline in Consumer and Healthcare stocks offset some bounce in the Banking stocks.

Dow Jones, S&P500 and Nasdaq remained flat to negative with 0.18, 0.14 and 0.11 per cent losses respectively. Now all eyes are on Janet Yellen’s speech in Jackson Hole. There have been comments from other top officials supporting the rate hike.

European markets too declined, being dragged down by the Healthcare stocks after US presidential candidate, Hillary Clinton asked for price cuts in drugs and treatments. DAX fell 0.88% and the CAC-40 slumped 0.65%. FTSE 100 dropped but marginally at 0.28 per cent.

Asian markets are majorly lower where Nikkei has tumbled 1 per cent while Hang Seng is trading up with 0.76 per cent gains. Shanghai composite too is marginally up with 0.35 per cent gains. Australia’s S&P/ASX 200 is flat to negative; while New Zealand’s S&P/NZX 50 is 0.39 per cent down. South Korea’s KOSPI is 0.18 per cent down.

SGX Nifty is trading marginally up at 8657 levels. Markets have witnessed a free fall in previous session and may continue with the same unless they are propelled by a positive trigger. Markets have closed almost near the support and hence markets need a slight bounce back to save themselves from further correction. Tata Motors is the stock to be watched out ahead of results.