The markets are set to continue their recent lackluster trend in the absence of any directional from the global counterparts, given the prevalent year-end holiday atmosphere. It may be recollected that the indices had opened flat and traded in a narrow band of 0.3% in the previous session. One would have to wait and watch whether volatility associated with a derivatives expiry, which has been conspicuous by its absence this time around, rears its head on the penultimate day of the December series as the participants seek to either unwind or roll over their existing positions.
The Dow and S&P 500 rose in light trading on Tuesday, extending December's rally, as cold weather in the Northeast lifted oil prices and energy shares. The Dow was up 20 points at 11,575 and S&P 500 was up 0.98 point at 1,258. But the Nasdaq Composite Index was down four points at 2,662. The Asian markets have edged higher in early trades. The Hang Seng is quoting at 22,749, higher by 127 points and Nikkei is at 10,309, up 17 points in early trades. Moreover, the trading pattern on the Singaporean bourses also suggests that the markets back home are unlikey to break out of their shell in today's session. The SGX Nifty is at 6013, down three points, in pre-market trading.
The trend deciding levels for the day are likely to be 20033 / 5996. If the indices sustain these levels, we may witness a rally up to 20083-20141 / 6011-6025 levels. Else, we may correct up to 19975 – 19924 / 5982 - 5968.
There could be stock specific action though. Keep an eye on SBI, the country's largest lender, which raised Rs 500 crore at 9% through certificates of deposits (CDs), on Tuesday to meet its its short-term funding needs. Moreover, the mid-sized branded jewellery company Gitanjali Gems (GGL) plans to divest 10% in a restructured brand holding company in an attempt to raise $100 million. Tech Mahindra, one of the country's largest software exporters, has partnered with software behemoth Microsoft to offer customised CRM solutions for telecom service providers. And Karur Vysya Bank (KVB) is considering a rights issue worth Rs 450 crore this financial year, before May.