Top Stock Market action to look out for today

The Nifty may get a breather on Thursday after four days of relentless selling as global cues are slightly positive and markets in China, the world's biggest economic problem as of now, are shut for two days due to holidays.

The SGX Nifty Futures signal a 14-point up tick on Nifty futures and major indices in the US closed with strong gains, mainly on account of covering of short positions that have pushed the Dow Index 6.7 percent lower in 14 trading sessions. Meanwhile, US indices posted gains of between 1.8-2.5 percent overnight and stocks in Europe, too, closed modestly higher yesterday.

Commodities remained a quiet area for trading. Crude oil futures slipped a bit, trading near their 6-year lows. Gold, Silver and Copper futures remained muted.

Meanwhile, the Nifty Index fell 69 points to 7,717 on Wednesday. Support levels are getting degraded, the latest is now pictured at 7,576-point band while resistance is moving lower as well: at the 7,910-8,050 range.

The picture in the cash markets worsened on Wednesday. Foreign Institutional Investors remained net sellers for the third day and the level of sales rose to 1,573 crore rupees. Net purchases made by domestic institutional investors were at 880 crore rupees but were no match to the sustained selling by overseas funds.

The bears firmed up their hold on the derivatives space. Traders were net sellers of 1,790 crore rupees for Index Futures; Net sales of 169 crore rupees for Stock Futures; Net buys of 477 crore rupees for Index options and net buys of 39 crore rupees for Stock Options.

Delivery based buying was observed on Shriram Transport, TCS and Sun TV.

Image credit: Indiatimes