Domestic stock markets on Thursday are likely to open flattish amid mixed global cues. However, the NSE F&O August monthly contracts expiring today, the market will remain volatile. Select mid and small-cap stocks will continue to see value-buying, analysts said. Nifty futures also so far witnessed a strong rollover of 67 per cent.

Going ahead, the all-important US Fed's Jackson Hole symposium (August 26-28), will be closely watched for further market direction. The hot topic will be the intention of many Fed officials to move away from easy monetary policy.

Nifty futures at 16,657 on the Singapore Exchange suggests a flattish-to-positive opening for Nifty, which on Wednesday closed at 16,634.65; Nifty futures closed at 16,632.35 (August) and 16,664.90 (September).

According to S Hariharan, Head- Sales Trading, Emkay Global Financial Services, as with the last few weeks, market breadth has continued to be subdued with the large-caps meaningfully outperforming mid & small-caps.

“While Retail segment long positioning has been coming down, FII net long positioning in single stock futures has gone up to nearly 8-month highs. Narrow market breadth has tended in past instances to lead to pull-backs – however, extremely accommodative monetary conditions in India as well as globally have provided conditions of extremely shallow corrections,” he added.

The US stocks continued their momentum on Wednesday as well. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite closed firm with marginal gains. However, markets across Asia-Pacific are ruling flat with the Chinese, Korean and Australian markets ruling marginally down while Taiwan and Japan markets remain firm.

“We can expect extremely oversold conditions in small cap universe to ease, while broader markets continue to trade range-bound,” Hariharan added.

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