Global Markets remain strong, Asia trades negatively

Strong stimulus expectation from European Central Bank (ECB) tomorrow still holds the Global Market strong while China’s trade balance data keeps the Asian market in the negative zone for yet another day.

How does this impact the Domestic Markets?

Strong buying sentiment was observed in the Indian Market over the last few days where Nifty almost touched 7500 on 8^th March 2016. This is possibly due to strong expectation from RBI Interest cut expectation in the domestic front. China’s data had little or no impact on Indian Markets.

Yesterday, Nifty future saw a selling of 74 points till the low of 7414. Nifty Future opened at 7473 to make a high of 7498 and closed at 7452.

Further if we take a close look at the FII Index Future Buy/Sell activity for the last 5 days, it is noticable that since March 1st, FIIs have built long positions worth 3104 Crores, highest being on 2^nd March of 1188 crores and lowest on 4^th March of 147 crores.

Fresh buying positions was observed at strikes of 7600, 7700 and 7800. Put buying has happened in the strikes of 7300, 7200 & 7500.

International Market Outlook

For two days in a row, Asian Markets like Nikkei, Hang Seng etc., are trading in the negative zone today on cues from weak China’s trade balance data. Other Global markets still hold strong yet another day on the cues from the European Central Bank to announce another hefty stimulus on 10th March 2016.

Small Cap Index at a Glance

Small Cap Index in India is trading at 4750 with immediate target of 4926. Healthy return can be expected from fundamentally strong shares. Small cap Index traded in a narrow range of 70 points yesterday. The Small Cap Index opened at 4770, touched a high of 4814 and a low of 4753 and closed at 4793.

Nifty might give a correction and make a low of 7350. This would be the ideal time to take Buy positions in Nifty. SGX Nifty was also seen making a high of 7560 testing its previous month high of 7600. This can be an indication of Nifty following the footsteps of SGX Nifty.