Expect A Positive Opening
DSIJ Intelligence / 12 Nov 2013
Indian equities witnessed continuous profit booking in last few trading sessions. This sort of movement was anyway expected as the indices had moved upwards briskly. But the moot question is, where does the support lies? We feel the indices are likely to consolidate at current levels before making a move either way. A lot also depends on the global cues.
Indian markets witnessed a continuous profit booking as the indices witnessed a southward movement. After touching an all time high levels on the Muhurat trading session the Indices have only moved one way and that is downwards. This sort of movement was anyway expected as the indices had moved upwards briskly. But the moot question is, where does the support lies? We feel the indices are likely to consolidate at current levels before making a move either way. A lot also depends on the global cues also.
If we take a look on the global cues, yesterday the U.S. stocks rose, with the Dow Jones Industrial Average extending a record, as investors awaited retailer earnings reports to gauge the strength of consumer demand and the likelihood of cuts to monetary stimulus. Apart from that the corporate earnings that surpassed estimates and unprecedented monetary support from the Federal Reserve have propelled the S&P 500 higher. So the US markets provided positive cues today in terms of expectations from continuance of stimulus and even on the earnings front. As a result while the DJIA closed at 15783 (Up 0.14 %) the S& P 500 closed at 1772 (Up 0.07%). Even the European markets closed with Marginal gains taking the cues from US markets.
As regards the Asian markets, the leading indices are trading in green. As per the reports from Bloomberg, the Asian stocks rose, with the benchmark index climbing a second day, as Korean shares rallied from a two-month low. The baht extended declines versus the dollar after Thai senators rejected an amnesty bill that sparked protests, while gold maintained its drop. As regards the movement of Indices, Nikkei is trading with gains of 1.79 %. While Shanghai Composite is up by 0.66 %, Kospi is up by more than 1 %. Only Hang Seng is down marginally with loss of 0.27%.
We expect the Indian markets to witness a positive opening today as the cues from the global markets are positive. However, the opening will be flattish as the SGX Nifty is also indicating towards the same. SGX Nifty is trading at 6124 up by 4 points. We feel the markets are likely to take positive cues from the fact that good amount of voting happened in the first leg of Chhattisgarh assembly election. Higher voting provides a good chance to BJP Government to retain power. And this is a positive indication for markets as well.
The India Inc corporate results season has also been better than expectations providing some strength. Hence we expect the Indian equities to witness a positive opening today. However, the profit booking may again take the indices in red zone.
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