Indices hope for recovery

On the F&O expiry day, the markets extended their fall for the third straight day in a row. The early indication from the SGX Nifty indicates that the markets could end their losing streak today since a positive start is very much on the cards. Global cues are helping the cause as well. The Nifty could open around 32 points higher at levels of 12,225. The index, at present, has come back to one of its crucial support levels. Given that we are near to a crucial support level and the global cues are cheerful, there is a high probability of seeing a technical pullback. However, at the same time, we expect volumes to be light due to the ongoing holiday season. Hence, we would suggest, you avoid any large exposure and maintain a stock-specific approach.
 
The majority of the Asian markets were trading in the green on the final trading session of the week following overnight cheerful cues from Wall Street, as major indices jumped to new record highs. Hong Kong’s Hang Seng is up more than a per cent and is followed by China’s Shanghai Composite, which has recorded a rise of over half a per cent. Meanwhile, Japan’s Nikkei 225 is almost unchanged.
 
Back home, the markets opened the session on a flat note. However, as the day progressed, the selling pressure intensified and key benchmark indices ended the session near day’s low. The Nifty and the BSE Sensex lost 0.72 per cent each. Broader markets showed some respite on Thursday as they ended with modest gains. Nifty Midcap and Nifty Small-cap added 0.07 and 0.08 per cent, respectively. On the sectoral front, barring Nifty Metal and Nifty Media, all other indices ended in red, with Nifty PSU Bank, Nifty Pharma, and Nifty Bank becoming the top losers.
 
In overnight development, the US major indices notched another round of record settings highs on Thursday. Market participants seemed to be pleased with recent reports that suggested that the US and China were close to reaching a trade agreement. Adding to the positive sentiment was the report, which stated that retail sales strengthened during the holiday season with notable gains in the online shopping area. The tech-heavy NASDAQ closed above the 9,000 mark for the first time, the Dow added 106 points to close at 28,621, and the S&P 500 rose 17 points to reach 3,240 levels. The European markets remained closed on Thursday.