Markets Likely To Open On a Quite Note

The equity markets globally have always been an uncertain place. And Indian markets are no exception. In the last few trading session the way indices have moved only indicates towards the uncertainty in the markets. While on Monday the Sensex witnessed a selloff of more than 430 points, on Wednesday the Sensex surged by 490 points.

This sort of movement has baffled the investors completely. As a result though the markets have recovered the investors are still confused. We feel today is going to be another day where the confusion may persist. There are mixed signals from the Asian peers and the US as well as European markets closed in red yesterday. As for US markets S&P closed 0.50 % down at 1650.47 and Dow closed at 15233.22 (Down 0.28%). In Europe, though the FTSE had opened on a strong note lost the streak towards the fag end of trading session. FTSE closed marginally down at 6687.80 (Down 0.09%). While DAX closed at 8369.87 (Up 0.09), CAC 40 closed at 3979.07 (Down 0.08%).

Asian Markets have opened on a quite note with Nikkei trading marginally down at 15014 (Down 0.15 %). However noticeable factor is after opening gap down the index has recovered a bit. Straits Times is trading almost flat at 3449.94 (Down 0.07%). KLSE is up by 0.18% trading at 5008.Reports suggested Asian stock indices fell on account of weaker earnings forecast from the likes of Worley Parsons and Nippon Sheet Glass Co. Even the data on jobless claims and housing signalled a continuation of slowdown in the U.S. 

As regards the Indian markets we are expecting a quite opening. Reason being, the markets have actually surged a bit and Friday being a last day of weeks trading session, no one would like to take a bold step of taking heavy positions. Further, Japan’s policy makers meet next week which is expected to be a next trigger for the markets. Hence most traders would opt for take a wait n watch strategy. SGX Nifty though is trading at 6202 (Up 28.50 points). So do not expect a big bang opening. The Sensex is likely to open on a marginally positive note and may remain range bound in the morning session.