Market remains lacklustre ahead of F&O expiry

Among sectors, capital goods pack is currently leading the BSE indices tracking sectors,

Key benchmark indices remained continue to trade flat with a positive bias as investors remain wary of the near-term December 2013 derivatives expiry on Thursday. Market will remain closed on account of Christmas tomorrow.

Broader markets continue to perform well boosted by market regulator Securities Exchange Board of India's (SEBI's) move to relax norms on trading of thinly-traded stocks. This will see many illiquid stocks shift to normal trading session from the  periodic call auction window.

BSE mid-caps and small-cap and mid-caps indices are trading 0.6-0.9% higher as compared to their previous close.

The market is likely to remain volatile in this holiday truncated week as traders will roll over positions in the futures & options (F&O) segment to January series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed tomorrow, 25 December 2013, on account of Christmas.

At 10.35 am, the 30-share Bombay Stock Exchange (BSE) Sensex is trading 5.08 points higher at 21106.11 and the 50-unit Nifty of the National Stock Exchange (NSE) was trading falt at 6,284.30. 

(Market update at 1045hrs)
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After opening on a positive benchmark indices pared earlier gains but continue to trade in the green zone. Market opened higher note tracking on positive global cues.

The market is likely to remain volatile in this holiday truncated week as traders will roll over positions in the futures & options (F&O) segment to January series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed tomorrow, 25 December 2013, on account of Christmas.

The 30-share Bombay Stock Exchange (BSE) Sensex is trading 14.01 points higher at 21,115.04 and the 50-unit Nifty of the National Stock Exchange (NSE) was trading 2.65 points higher at 6296 levels.  

L&T is up the top Sensex gainer, up 1.1% followed by BHEL up alomst 1%, Cipla and Bharti Airtel are up 0.7% while GAIL and M&M are up 0.6% at this hour

Among sectors, Capital Goods poack is currently leading the BSE indices tracking sectors, followed by Healthcare, Oil & gas, FMCG, IT, auto, power are other gainers.

On technicals, one could keep stop loss shorts at 6350 and Stop loss long positions at 6250. A breakout or breakdown could go till 6400 or 6200 respectively. A strangle of long 6400c (4.5) and long 6200p (3.5) could hit a cmobined value of 20-plus if there's a big move.

Asian markets took cheer on Tuesday after Wall Street rang up more records and upbeat US spending data burnished the outlook for the global economy, with Japan's Nikkei hitting a 2013 high after Tokyo markets opened after a holiday. Tokyo's Nikkei sped to a six-year peak, adding about 0.8% and topping the 16,000-mark, driven by buying from long-only investors after Wall Street marched upwards. Japan's benchmark was up more than 50% this year, on track for its best annual rise since 1972.

US stocks climbed on Monday, with the Dow and S&P 500 advancing to all-time highs as a distribution deal by Apple Inc with China Mobile boosted the technology sector.

Apple rose 3.8% to USD 570.09, its biggest percentage gain in three months, after the tech titan said on Sunday it had signed a long-awaited agreement with China Mobile to sell iPhones through the world's biggest network of mobile phone users a deal that could add billions of dollars to its revenue.

DJI rose 73.47 points or 0.45%, to end at 16,294.61, a record high. The S&P 500 gained 9.67 points or 0.53%, to finish at a record 1,827.99. The Nasdaq Composite advanced 44.163 points or 1.08%, to close at 4,148.903, its highest since August 2000.

Asian markets too are trading firm after Wall Street rang up more records and upbeat U.S. spending data burnished the outlook for the global economy, even as benign inflation left gold on course for its worst year in over two decades.

Meanwhile, RBI Governor Raghuram Rajan said the central bank had tilted towards keeping rates on hold even before November consumer and wholesale price inflation data were released.

STOCKS TO WATCH

GMR Infrastructure is trading higher by 4% at Rs 24.70 in early morning deals on reports that the company is planning to sell its entire 40% stake in Istanbul’s Sabiha Gökçen International Airport (ISGIA) for Euro 225 million (Rs 1,900 crore) to Malaysia Airport Holdings Berhad (MAHB).

The company has received from received a notice from MAHB, one of the shareholders of ISGIA and LGM Tourism, seeking to exercise its right of first refusal, for acquisition of 40% equity stake in ISGIA and LGM, GMR Infrastructure said in a BSE filing.