Year End Moves: Expect a Positive Bias

“Each age has deemed the new-born year the fittest time for festal cheer.” This very simple adage of Sir Walter Scott seems to be the theme for markets worldwide this week. Monday’s trading provided enough cues on where the rest of the week is headed. After opening almost flat, the markets remained sluggish for most part of the day and closed with only marginal gains. The trend is not likely to be any different today. Christmas rallies across the globe will be in vogue, which the Indian market too will follow closely.

There aren’t any overnight cues for the markets to take as Christmas kept the world rejoicing yesterday. For once, you begin the day with not much to discuss about the impending Fiscal Cliff. This was visible even in the opening trades across other Asian markets. Japan came back to life after a brief holiday and was trading in the green this morning too. Other markets including Honk Kong and Taiwan too have opened in the green and were seen trading positive. China continued to play contrarian to its Asian peers this morning too. However, the Shanghai Composite turned green as the day progressed and is currently trading up.

The SGX Nifty which is a benchmark that the Indian markets closely follow is trading up 10 points. This could lend a positive bias to opening trades in the market today. The trend of following stock specific cues will continue for today as well.

Meanwhile, positive tax collection numbers could be a point the market will take note of. Another significant development which could be read to be a result of the new reforms process is Russia coming in to sign a slew of deals with India. President Putin’s visit to India has seen trade talks gain further momentum. This could provide a good sounding board for the reforms process initiated by the government, with other countries as well.

European markets had closed positive on Monday and are expected to extend their gains today. Despite the economic gloom surrounding the region, a Christmas rally is surely on the cards there too. This will add another whiff of positivity to the Indian markets during the course of the day.

All in all, it could be a quite day for the markets today. Watch out for the ‘Stocks In Action’ along with our technical call on the Nifty which should help you plan the day ahead.