Markets Trading In Narrow Range

Indian markets have opened their morning trades in a very narrow range, and it seems that after long up run markets are looking in a consolidation phase and we might see correction in the next couple of days. Both the broader Indices Sensex and Nifty are trading higher 0.13 and 0.01 per cent respectively. Among the Sectoral Indices IT, Teck, Health care, FMCG etc are trading higher in the positive zone while Indices like Power, Metal, Bankex etc are trading lower down in the negative zone.  

Asian markets like Hang Seng and Shanghai are closed on account of Public Holidays. While the Japanese Index Nikkei is trading lower 1.18 per cent after the Bloomberg report which said that China’s manufacturing contraction persisted last month, Japanese industrial companies grew more pessimistic and South Korean exports fell, signaling East Asia’s biggest economies have yet to reverse their slowdowns.

Back home, Auto stocks are trading higher with Maruti Suzuki being the leading Index gainer trading higher 1.93 per cent to Rs 1375.95 per share. Other Auto stocks like Tata Motors, M&M and Hero Motocorp are also trading higher in the range of 0.3 to 1.7 per cent respectively. IT heavyweights like Infosys, TCS and Wipro are also trading higher in the range of 1.7 to 0.8 per cent respectively. Other stocks like Sun Pharma, Dr Reddy’s Lab, ITC, SBI etc are some of the stocks which are trading higher in the positive territory.

On the other hand Metals pack is showing lackluster performance with Tata Steel being the leading Index loser trading lower 1.55 per cent to Rs 394.55 per share. Other metal stocks like Hindalco, Jindal Steel, Sterlite Industries etc are also trading lower down in the negative territory. ICICI bank is trading lower 0.99 per cent to Rs 1046.8 per share, this could be after the stock is seeing some profit booking. Other losing stocks include ONGC, HDFC, Bajaj Auto etc are also trading in the negative territory.  

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1421 shares advanced, while 777 shares have declined, 97 shares are unchanged.

We expect the markets to consolidate further and probably move southwards. We would advise our readers to play with cautious.