Indian Markets surge on August F&O expiry day - ZENMoney

Domestic indices opened the day on a gap up note following firm global cues amid F&O expiry day. Rupee strengthening against the dollar has aided the positive sentiment in the markets. Indices found some support after government turned down fears of any sharp spike in fiscal deficit coupled with RBI measures to curb rupee fall through dollar flows. Recovery in rupee and positive support from global markets have supported the market rally. Markets continued their upside in the afternoon session with buying witnessed in front liners. Indices ended the day with gains.

On a sectoral front, all the sectors ended the day in positive. Oil&gas sector is the major gainer of the day after the central bank opened a special window to sell dollars to meet the daily dollar requirements of the three public sector oil companies (OMC's). Metals, FMCG, Capital Goods, Auto, Power, Banking, Health Care, CD, IT and Realty are other gainers of the day.

Domestic indices are expected to open the day on a side way note with a positive bias tracking global market movement and remain rangebound thereafter tracking domestic cues. Easing of tensions over a US military intervention in Syria will keep markets upbeat and support global rally.

On the domestic front, the market would continue yesterday's positive momentum if the rupee continues to strengthen further. However, the market can backtrack if the rupee weakens further.

The key event for the market today will be the first quarter GDP numbers that would be released today.Abetter than expected number can provide some short term relief to the market while lower than expected numbers will add to the market weakness.

Crude prices retreated from a two year low on easing concerns about an imminent military strike on Syria. Falling crude prices will cheer Indian market sentiments.

The FII continued their selling in the Indian market although the pace of selling has decreased. As per provisional data, they net sold equities worth Rs.248.18 crore on Thursday. An uptick in FII flows can improve market sentiments.

For the Nifty 5458, 5507, 5633 are the immediate resistance levels, while 5331, 5254, 5128 are its immediate support levels.

For the Sensex 18548, 18694, 19079 are the immediate resistance levels, while 18162, 17924, 17540 are its immediate support levels.

Source : Equity Bulls

Keywords