The domestic markets opened flat on the first day of November series futures and options (F&O) contracts, tracking muted trend seen in Asian markets as the Bank of Japan refrained from adding more stimulus in the economy and left the monetary policy unchanged at liquidity base of 80 trillion Yen rise annually.
The S&P BSE Sensex rose as much as 54 points to 26892.45, while broader CNX Nifty was trading above its crucial level of 8,100, but hit 8092.40 level in the early trade.
At 9:30 am, the 30-shares index was trading at 26,839.29, up 1.15 points, while 50-shares index was quoting 8,112.85, up 1.10 points.
“Going forward, if the Nifty manages to sustain above yesterday’s high of 8209 then we may witness a bounce towards 8280-8300 levels. On the flipside, 8139-8088 are seen as immediate support levels for the index,” said Angel Broking in a research note.
Market breadth remained mixed with half of the 30 Sensex stocks trading in red.
Experts believe markets are likely to trade in a range until the outcome of Bihar elections comes in, which is due on November 8.
Brokers said building-up of positions by participants, following beginning of the November month F&O series helped Sensex recover, but a weak trend at other Asian markets on overnight losses on the US markets capped the gains.
Among Asian markets, China’s Shanghai Composite was trading 0.30 per cent lowr, Hong Kong’s Hang Seng was down 0.37 per cent, while Japan’s Nikkei was trading with a downtick of 0.15 per cent.
Overnight, US stocks retreated after posting gains in the prior session on a mix of profit taking and less than impressive economic data. The traders were still evaluating Fed statement and strengthening language about timing of the rate hike. The third quarter GDP data showed that the economy expanded at a 1.5 per cent, below the expected 1.6 per cent.