 "Nifty ends shy of 7,850 as European stocks rebound; F&O expiry eyed")
After a dismal opening, markets staged recovery in noon trades and closed higher on renewed buying interest in beaten down bluechips particularly banks.A strong rebound in European shares amid recovery in global crude oil prices further bolstered trading sentiment.
Meanwhile, investors are keenly awaiting for the expiry of the September F&O series and roll over positions to the October series due tomorrow.
Meanwhile, investors are keenly awaiting for the expiry of the September F&O series and roll over positions to the October series due tomorrow.
The Sensex closed 171 points higher at 25,823 while Nifty gained 34 points to end at 7,846. In the broader markets, BSE MidCap and SmallCap index climbed between 0.5-7%. The market breadth ended firm with 1,529 gainers and 1,145 losers on the BSE.
MARKET VIEW
According to Chandan Taparia, Derivative Analyst, Anand Rathi,"Long term trend is still positive but short term trend is under pressure as the Nifty index corrected from 9191 to 7540 mark in last seven months with short built up and negative flows from FIIs. But as per the recent price behavior, now we are getting an early sign of bottoming out of the market as it tested 7550 zones but the short term trend would require index to cross and hold above 8000 zones to revisit 8181 and 8330 levels in next coming series. "
He further adds, "Market rally started by crossing high of 7562 made on 16th May 2014 (Election result of NDA govt). It tested the previous resistance and moved higher which a classical example of a bull market and a hope for bulls to start the next leg of rally."
CRUDE OIL
Brent crude oil increased towards $50 a barrel on Wednesday as easing of supply glut in US crude oil stocks outweighed the negative impact of weak economic manufacturing data from China.
RUPEE
The rupee was down 10 paise at 65.97 against the US dollar as the US dollar hit a more than two-week high against the euro on continued belief that the Federal Reserve would hike rates this year.
GLOBAL MARKETS
Asian stocks ended lower on Wednesday after recent data from China raised concerns of growth slowdown. A private survey showed that China's factory sector unexpectedly shrank to a 6-1/2 year low in September. China's Shanghai Composite ended down 2.2% while Hang Seng also ended 2,2% lower tracking weakness in the mainland. Japan's financial markets remained closed today.
European markets were trading firm with CAC-40, DAX and FTSE-100 up between 1.2-1.5%.
STOCK TRENDS
All sectoral indices barring BSE Power index closed in green with Bankex, Healthcare, IT, FMCG, Consumer Durables, Oil & Gas and Realty indices ending higher between 0.5-1.5%.
FMCG major and cigarette maker ITC ended 1.7% higher on renewed buying interest at attractive valuations. Meanwhile, advancement of monsoon aided the sentiments.
IT giants, TCS and Infosys climbed 0.5% and 1% each on the back of depreciating rupee.
Financials, realty and select auto stocks gained across the exchanges as the easing consumer price inflation data along with favourable macroeconimc numbers and advancement in monsoons has created enough room for a rate cut by the RBI in the forthcoming monetary policy. HDFC twins, Axis Bank, ICICI Bank and SBI from the financial space gained between 1-2.7%. Meanwhile, M&M, Maruti Suzuki and Hero Motocorp ended higher between 0.5-3%.
Metal shares which slumped in the morning trades after weak factory data from China, the world's largest consumer, raised worries about export demand gained ground in the late trades on buying interest at attractive valuations. Tata Steel, Hindalco and Venata surged between 0.1-3%.
Tata Motors eased nearly 2% on fears that the economic slowdown in China could hurt sales of JLR, the luxury arm of Tata Motors.
Major telecom operators, including Bharti Airtel, and Idea Cellular have opposed the compensation to mobile users for call drops as proposed by the Telecom Regulatory Authority of India (Trai). Bharti Airtel and Idea Ceullar were down 1.5% and 1.4% each.
L&T gained nearly 1% as it decides to sell some assets including roads and infrastructure projects and dilute its stake in non-core subsidiaries to revive performance.
Shares of state-run power equipment maker, BHEL lost 1.6% after the rating agency Crisil downgraded its outlook on BHEL’s long-term bank facilities to 'negative' from 'stable', citing that the company's project execution and profitability will remain vulnerable to structural issues causing distress to the power sector.
