Markets Trading In Narrow Zone

The Indian markets have extended their morning gains amid strong Asian cues and the positive opening of the European market. However, the May month expiry on Thursday this week has kept the trades in the narrow range. The Sensex and Nifty are up by 0.57% and 0.49% respectively. In the BSE sectoral indices, some buying has been seen in IT and Auto, which are up by 1.24% and 1% respectively. The major losers are CD and FMCG, both down by 0.40%. All the other indices are trading with marginal gains of between 0.28%-0.89%.

European markets opened in the green zone today after the opinion polls in Greece eased concerns over the country leaving the Euro zone. Also, the markets are expecting positive consumer confidence and housing market data today, which has helped them to remain in positive territory. FTSE, CAC and DAX are up by 0.73%, 0.92% and 1.11% respectively.

The Peer Asian markets are continuing to trade on a positive note as investors seem to be buying at lower levels. The Shanghai and Hong Kong markets are also trading higher on hopes that China will roll out fresh stimulus measures to raise the domestic demand.

Back home, GMDC surged by 3% to Rs 175.80 as the company reported decent result for the March 2012 quarter. Post the results announcement on May 25, the stock is up by almost 8%.

Among the Sensex stocks, BHEL, Coal India, SBI and TCS are leading with gains of 1.47%, 1.41%, 2.01% and 1.86% respectively. Of the major losers, Bharti Airtel, Hindalco and ITC continue to trade lower by 0.50%, 0.61%, and 0.72% respectively.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1337 shares have gained, 1091 shares have declined and 122 shares are unchanged.

We expect the markets to remain volatile and to trade in a narrow range for the rest of the day, as traders roll over positions from the near-month May 2012 series to the June 2012 series.