Markets Almost Unchanged

Indian markets continued to trade in a very narrow range. The technical indicator suggests that market is in overbought range and hence is consolidating and then might move southwards. Sensex is trading marginally higher 0.01 per cent while Nifty is trading lower 0.03 per cent. Among the sectoral Indices IT, Teck, Auto continue to trade higher in the positive territory while on the other hand Indices like Realty, Bankex, Metal Indices are trading lower in the negative territory.

Hang Seng and Shanghai markets are closed today on account of Public holiday. Nikkei recovered from the day’s low however is trading lower 0.85 per cent after Bloomberg reports which said that Japanese stocks fell at a three-week low, after a survey showed declining sentiment among the nation’s biggest manufacturers and as China’s factory output contracted amid a global economic slowdown that sapped export demand.

On the other hand the European Indices have opened in the positive territory, with Indices like FTSE, CAC and DAX have opened their initial trades higher in the range of 0.2 to 0.5 per cent respectively.  This is after Bloomberg report which said that test results showed the stress to the Spanish banking system was within estimated limits, outweighing weakening economic data from Asia.

Back home, Auto stocks are trading higher with Tata Motors being the leading Index gainer trading higher 2.39 per cent to Rs 273.85 per share. Other Auto stocks like Maruti Suzuki and Hero Motocorp are up 0.97 and 0.59 per cent respectively. While stocks like TCS, Cipla, ITC etc are trading marginally higher in the green zone.

On the other hand Tata Steel is the leading Index loser trading down 0.91 per cent to Rs 397.1 per share. Other Index heavyweight names like HDFC bank, ICICI bank, ONGC, HDFC, HUL are also trading lower dragging the market lower. Other stocks like RIL, Sterlite Industries, L&T, Hindalco etc are also trading lower in the negative territory.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1627 shares advanced, while 1061 shares have declined, 126 shares are unchanged.

We expect the markets to move southwards and advise readers to play with caution.