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Pre-market: Nifty seen opening flat; F&O expiry eyed

The 50-share Nifty index is expected to open flat following muted trend seen in other Asian markets ahead of November F&O expiry.

, ET Online|
Last Updated: Nov 27, 2014, 07.54 AM IST
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GDP data ahead of F&O expiry.
GDP data ahead of F&O expiry.
NEW DELHI: The 50-share Nifty index is expected to open flat on Thursday following muted trend seen in other Asian markets ahead of November F&O expiry.

Markets are likely to remain volatile as traders roll over positions in the futures & options (F&O) segment from November 2014 series to December 2014 series.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 6.50 higher at 8,484 indicating a flat opening on the domestic market.

Nifty ended the day with marginal gains of 12 points at 8475 whereas the Sensex was up 48 points at 28386 on Wednesday.

The 50-share Nifty index has immediate support placed at 8440 and below that the level of 8350 is a key support level to watch out for.

"Though yesterday's decline was seen on a higher than average volume the index is still maintaining its higher tops - higher bottoms structure and the trend will remain firm till the time 8350 is intact as a support," GEPL Capital said in a report.

"On the higher side, now the index may face resistance near 8490 - 8500 and beyond that 8535 may serve as a resistance for the F&O expiry session," added the report.

Even though markets managed to bounce back towards the fag end of the session, analysts see further consolidation at current levels.

"We believe markets would further consolidate around the current levels amid volatility due to F&O expiry; however, participants will continue to find ample opportunities on stock specific front," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"Broadly, the positive bias would remain intact till the benchmark index, Nifty, upholds above 8300 mark. So, investors are advised to look for the value buying opportunities in fundamentally sound businesses during this phase," he adds.

Overnight, US stocks ended at record highs boosted by tech shares, with the S&P 500 and Dow industrials closing at records.

"Trading was relatively light, with 4.8 billion shares changing hands compared to the daily average this month of about 6.3 billion," Reuters reported.

"The stock market will be closed on Thursday, while Friday will be a half-day session with the close at 1 p.m. (1800 GMT)," added the report.

On the macro front, U.S. consumer spending rose modestly in October and a measure of business spending plans fell for a second straight month, but consumer confidence was near a 7-1/2-year high.

The Dow Jones industrial average rose 12.81 points, or 0.07 per cent, to 17,827.75, the S&P 500 gained 5.8 points, or 0.28 per cent, to 2,072.83 and the Nasdaq Composite added 29.07 points, or 0.61 per cent, to 4,787.32.

Asian shares were trading mixed. Japan's Nikkei 225 index which was trading 0.36 per cent lower at 17,321 and Hong Kong's Hang Seng index was trading 0.09 per cent higher at 24,131.

South Korea's Kospi index was trading 0.08 per cent higher at 1,980 and China's Shanghai index was trading 0.73 per cent higher at 2,623.

(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
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