“The market looks very volatile at the current position. We advise investors to book partial profits and keep a bit of cash balance in hand. Also, RBI will be announcing its policy, wherein we don’t expect any rate changes. However, it may pull out surplus liquidity,” said Rahul Sharma, Co-Founder, Equity99.
How are bluechips doing
After opening in the green, benchmark indices maintained the lead. At 9.25 am, BSE flagship Sensex was up 211 points or 0.35 per cent to 59,889. NSE benchmark Nifty advanced 78 points or 0.44 per cent to 17,868.
“On technical front, 17,920 level is a good resistance at the moment but any move above 17,920 can push Nifty to the level of 18,100. On the downside, 17,620 is a strong support for Nifty today,” said Mohit Nigam, Head – PMS, Hem Securities.
In the 50-share pack Nifty, Tata Motors was the biggest gainer, up 3.81 per cent. Tata Steel, ONGC, Grasim Industries, Eicher Motors, L&T, Indian Oil and SBI Life Insurance were among other gainers.
Coal India was the top loser in the pack, down 1.63 per cent. HCL Tech, Asian Paints, HUL, HDFC and HDFC Bank were among those that traded in the red.
FACTORS DRIVING MARKETS
Good news
Jobless claims fall: Data on Thursday showed the number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labour market recovery was regaining momentum after a recent slowdown. Now all eyes will be on US non-farm payrolls report.
US debt default fears wane: The Senate approved legislation to temporarily raise the federal government’s $28.4 trillion debt limit and avoid the risk of a historic default this month, but it put off until early December a decision on a longer-lasting remedy.
Bad news
Yields rise: US Treasury yields rose ahead of payroll figures, with volatility at the shortest end of the curve easing as the plan to avoid a default on government debt emerged. In Asian hours, the benchmark 10-year US Treasury yield rose 1.6 basis points to 1.58887 per cent, its highest since June when it touched 1.594 per cent.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.57 per cent while Nifty Midcap advanced 0.35 per cent. Broadest index on NSE, Nifty 500 was up 0.45 per cent.
Wockhardt, MCX, Vakrangee, Indian Hotels, Polycab India and Sun TV were gainers from the space while Godrej Properties, Tata Elxsi, Trent, Balrampur Chini Mills, Infibeam Avenues and Radico Khaitan were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent, after rallying 2.1 per cent the day before, its biggest daily gain since August. Japan’s Nikkei index advanced 1.8 per cent.
Chinese blue chips gained 0.56 per cent as they resumed trading after being closed for the National Day holiday, while Hong Kong, which has been open all week, gained 1 per cent. Australian shares rose 0.84 per cent, helped by mining stocks amid surging commodities prices. U.S. futures rose 0.16 per cent.
