Another Positive Opening On The Cards

It has been a dream run for the Sensex in the past few trading sessions as the leading index moved continuously upwards. Just to quantify, the Sensex in the past five trading sessions moved upwards by around 10 %. The best part about the brief rally has been that the rally has been broad based with even the midcap stock moving upwards along with the large cap stocks. Helped by good amount of net buying by the FIIs the Sensex crossed the psychological mark of 20000 and has managed to Sustain near to that level.

So there has been a complete change of sentiments in the last few days, especially since the new RBI Governor has taken over to the office. The kind of actions taken by him to help the rupee to recover which has already appreciated to the levels of Rs63.38 per USD after touching a all time low recently. The recovery in the rupee has been the most positive factor. The moot question is whether the mood in the market remains the same or it may change soon. Let’s look at the different factors.

If we take a look at the global markets there has been positive news flow. While the European markets touching a multiyear high levels. Though the gains in the European equity markets were marginal, the noticeable factor is all the leading indices sustain the higher levels. As regards the US markets, it continued its up-move and DOW closed at 15326 (Up 135 points). We feel, with Obama weighing other option for Syria, the positive sentiments in the US markets to continue. 

As for the other Asian peers, except Japanese Nikkei all the other equity indices are trading in green. While Nikkei is down by 0.40%, the Strait Times is up 0.58%. Even Kospi is trading up by 0.55%. However the Shanghai Composite is trading in red with marginal loss of 0.30 %. Reports suggested that the Chinese stock futures declined as technically it is overbought. 

As regards the opening of Indian markets, we feel another positive opening is on the cards. Even the SGX Nifty is trading in positive zone. The SGX Nifty is trading at 5952 (Up 20 points). Now though the opening is expected to be positive, we cannot ignore possibility of profit booking at higher levels.