Wednesday, October 27, 2010

Indian Stocks to see a positive opening

Stocks on Dalal Street might see a gap up open today but thursday's F&O expiry might weigh on the street. It will be an interesting fight between the inflows to the street from Coal India IPO and F&O market makers who might want to inflict "Max Pain" to traders.

Wall Street closed the day pretty flat with no major cues. Japan's Nikkei and Australian markets are trading in the green on Wednesday morning.

Q2 Inline with expectations

Second Quarter numbers declared by majority of the companies are inline with expectations and we find many stocks taking a hit (in terms of stock price) as markets have discounted current performance.

Except for couple of companies like TCS, IB Financials, Guj Amb Exports rest of the crowd appeared to have met the expectations with the exception of Wipro.

Nifty to trade in a band

While hitting new highs might be a no brainer before Diwali, it is tough to expect Nifty to make big moves in the next two days. F&O expiry slated for thursday is likely to weigh on the markets. While "Max Pain" is showing a Nifty close around 6000 levels again tomorrow, one need to see if the concept works this month also.