Markets to trade positive but rangebound, I hope Day 4 of the game is better than Day 3!

US markets gained yesterday, with a positive reading on consumer confidence spreading cheer just before the holiday-shopping season, both the Nasdaq and Dow ended with gains at new highs.

On the economic data front: Jobs data: The number of unemployment claims for the week ended November 21, fell by 10,000 to 3,16,000. That is the lowest in two months.

European equities closed higher boosted by strong earnings, a coalition deal in Germany, and a strong start to US markets. UK’s second estimate for Q3 GDP confirmed an earlier estimate of 0.8 percent growth (MoM). Also, data showed improving consumer sentiment in Germany.

Asian markets are trending higher, Nikkei looks set to head back towards a 5-1/2 year peak reached in May.  SGX Nifty too indicates a higher opening by 33 points.

For Indian markets FII’s were net sellers second day in a row as were DII’s – it remains to be seen if we can react to positive global news against the backdrop of FII selling and expiry concerns.

I think markets will be rangebound with a positive bias – market does not seem to be in any mood to react negatively.  If post 2.00 pm there is heavy basket selling, then its a another thing but otherwise markets will trade higher and end positive for the day.

Day 3 of the game was bad for three of us, I hope Day 4 fares better.  My four stocks for the day are:

IDFC  Tgt 103  SL 99
Delta Corp  Tgt 95 SL 90.50
Hexaware  Tgt 123 SL 118
Escorts  Tgt 120 SL 116

 

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