 "Markets on Thursday: Range-bound movement ahead of F&O expiry")
Markets are likely to trade range-bound today ahead of the expiry of the derivative contracts for the September series due later today. Global cues are also likely to weigh in.
“Nifty has underperformed as compared to the EMs (emerging markets) in the last one month, which is a surprise. This is in spite of the positive outcome from the US Fed decision. It is possible that the volatility during the last two - three days is due to the clubbing of Fed event and F&O expiry within a short-time. Additionally, we are under the RBI event risk on 29 September,” explains Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
Also Read: Trading calls from Anand Rathi Research
On Wednesday, markets staged recovery in noon trades after a weak start and closed higher on renewed buying interest in beaten down blue-chip stocks, especially banks. A strong rebound in European shares amid recovery in global crude oil prices further bolstered trading sentiment.
Also Read: Devanshu Datta's top picks for today
The Sensex closed 171 points higher at 25,823 while Nifty gained 34 points to end at 7,846. In the broader markets, BSE Mid-cap and Small-cap index moved up between 0.5% - 7%. The market breadth ended firm with 1,529 gainers and 1,145 losers on the BSE.
Adds Chandan Taparia, derivative analyst at Anand Rathi: “Nifty Future OI added open interest by 42% in the entire September series with a fall in price by 1.30% at 7,846 levels. The Put Call ratio is hovering near 0.95 levels, which indicates that bulls are supporting the market on declines as sustain put writing seen at lower strikes. India VIX is down by 6% in this series and fell down from previous series high of 35.57 to 20.68 levels. Volatility may remain high till RBI policy meet on 29 September, but recent fall in VIX is giving comfort to bulls to process for a short term bottom in the market.”
Also Read: Brokers for bumps in high-speed trading
“Jubilant FoodWorks, JSW Steel, M&M Financial, RCom, Aurobindo Pharma, UBL, IDBI, TCS and GAIL top in stock-wise rollover, while Telecom, Metals, Fertilisers, Infrastructure, Textile, Banking, Pharma, Capital Goods and Realty stocks are top in sector-wise rollover,” he says.
GLOBAL MARKETS
Asian shares got off to a cautious start on Thursday after more dour economic news in China and the United States prompted a bruising selloff the previous day.
Worries that an eventual tightening in US monetary policy and slower growth in China could knock the global economy have scared off investors, particularly those invested in stocks and commodities.
MSCI's broadest index of Asia-Pacific shares outside Japan was up a touch in early trade after having posted their biggest single-day fall in almost a month the previous day. Japan's Nikkei average, opening for the first time since Friday after national holidays, tumbled 1.6%, edging near its seven-month low touched earlier this year.
Wall Street also lost ground on Wednesday, dragged down by economic reports portraying US factory growth as tepid and China in its worst manufacturing contraction since the global financial crisis.
The Dow Jones industrial average fell 50.58 points, or 0.31%, to 16,279 levels, the S&P 500 lost 3.98 points, or 0.2%, to 1,938 and the Nasdaq Composite dropped 3.98 points, or 0.08%, to 4,752.
With Reuters inputs
