Markets near day's high

Markets continue to trade in green. The Sensex opened with a positive gap at 19,735 and gained further to touch a high of 19,786. Easing tension about the Euro zone debt crisis and the Korean disturbances helped to strengthen investor sentiments. However, the index slipped 114 points from there to touch a low of 19,671. The Sensex has now recovered somewhat and is up 83 points at 19,775.

Nifty is trading at 5,963 - up 28 points.

Analysts feel the markets would be trading in a volatile fashion till the derivatives expiry on Thursday.

"I expect November and December to be volatile and weak with global events ruling the direction of the markets. The number of variables that determine the direction of markets have increased, which would keep the volatility high," says Vaibhav Sanghavi, Director – Equities, Ambit Capital.

Asian markets, after Tuesday's big fall, has managed to rebound this morning. The Hang Seng is up 0.7% at 23,054. Shanghai Composite has gained 0.2% to 2,835. Both indices had surged over 1% earlier in the global day.

US markets fell on Tuesday as Korean disturbances and debt worries took global stocks down. The Dow dropped 1.3% to 11,036. The Nasdaq dropped 1.4% to 2,495.

Most of the sectoral indices are in green this morning. The Auto index has gained 1.7% at 10,285.

Mahindra & Mahindra has gained 3.6% at Rs 788. Tata Motors has jumped 2.2% to Rs 1,241. Maruti Suzuki has added 1.7% to Rs 1,463.

BSE consumer durables, realty, oil & gas and healthcare indices are up in trades.

However, IT index is down. IT major - Wipro and TCS have shed 1% each to Rs 413 and Rs 1,023. Financial Technologies and MphasiS are down in trades.

"The stock is trading at 10.8x FY12E EPS. We maintain ‘BUY’ recommendation with target price of Rs780 based on 14xFY12E", recommends PINC Research.

Bharti Airtel continues to shine and is up 2% at Rs 336. Reliance Communications has added 1% to Rs 148.

Market heavyweight, Reliance, is up 1% at Rs 1,006. Metal stocks - Hindalco and Tata Steel are up in trades.

However, HDFC Bank and HDFC have dropped 1% each to Rs 2,343 and Rs 697, respectively.

Larsen & Toubro is down 0.8% at Rs 2,024.