Indian Markets
The key Indian stock indices have edged up ever so slightly in early morning trade but were seen struggling to hold on to the early gains amid signs of choppiness ahead of the F&O expiry. The opening today is mildly better as compared to some of the previous sessions as Asian markets have not fallen as hard as their US and European counterparts did overnight following a rare failure at a German bond auction.
US Markets
U.S. stocks slid deep into the red on Wednesday, ending down more than 2%, as eurozone fears rumbled on and a preliminary report showed that Chinese manufacturing slowed sharply. A lackluster report on the U.S. job market added to the gloomy mood on Wall Street.
The Dow Jones industrial average dropped 236 points, or 2.1%. The selling was broad, with all 30 components of the blue chip index losing ground. Bank of America was the biggest loser on the Dow, with shares sliding more than 4% and hitting their lowest level since March 2009. The S&P 500 dropped 26 points, or 2.2%, and the Nasdaq lost 61 points, or 2.4%. Investors were rattled by a disappointing auction of German bonds.
Asian Markets
Today, the Asian indices are trading on a mix note with Shanghai & Nikkei trading lower by 1.4% & 0.7% respectively. Shanghai is down as Chinese manufacturing activity fell to a 32-month low. However, the other Asian indices like Hang Seng, Strait Times, Kospi & Taiwan are trading in the positive in the range of 0.5%-1%.
Currencies & Commodities
The dollar gained against the euro, the British pound and the Japanese yen. Oil for January delivery slipped $1.84 to settle at $96.17 a barrel. Gold futures for December delivery fell $6.50 to settle at $1,695.90 an ounce.
Outlook for Today
Today, we expect the markets to open marginally lower initially and then make an attempt to inch up. During the latter half of the session, it is likely to take cues from Dow Futures & European markets for further direction. With the Nifty breaking the crucial lows of 4720 yesterday, the underlying trend remains undoubtedly down in near term. However, considering a sharp fall over the last few trading sessions, we could see some bounce back in the markets for a day or two before the fresh downtrend resumes. Immediate support for Nifty is at 4641, while resistance is at 4759.
Source-hdfcsec, Rh morning update
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