Thursday, August 26, 2010

Nifty eyes 5500 levels, global metal stocks weak

Indian markets will go through a volatile session today as F&O expiry is likely to weigh on traders.

Global Markets

US Market fared better on wednesday despite of weak durable goods orders. Asian markets started flat today with Japenese market slipping into red after Yen made another move towards the highs. Austrailia stocks are trading flat with mining stocks trading weak.

Indian Markets - Expiry hangover

F&O expiry is always tricky and with Nifty hovering between 5400 and 5500 levels it is a tough day ahead. Ideally Nifty is expected to close near to the strike price on the last day causing max pain to traders. Metals, realty and auto pushed the markets lower yesterday. We expect realty sector to show some resilience today after back to back loses.

Speculative stocks - Hop on

Investors should be careful with stocks like Prakash Steelage, Usha Martin Education. While many of us have seen the new listing movies lot of times, it is ideal to sit back and watch the show instead of participating.

DStreet market analyst Venkata Srikanth says "We still believe markets have some more steam left before the carnage. We expect underperforming sectors like Hotels, Power to participate in the midcap rally. From an investor perspective we are advicing our clients to wait till September for a better entry point