Nifty hovers around 8,750; Tata group shares gain

Markets have rebounded in trades today and are trading marginally positive supported by buying among blue chips mostly the Tata group shares.

By 9:40 am, the S&P BSE Sensex was 77 points higher at 28,371 and the Nifty50 rose 26 points to trade at 8,749. Among broader markets, BSE Midcap and Smallcap indices are up over 0.5% each.

“Consecutive narrow ranged formations on the weekly scale augur well for consolidation within the ongoing uptrend. On the daily scale nifty has been progressing well within the channel pattern with no signs of termination. The ongoing bullish trending sequence could deteriorate in case of a breach below 8,640. While a sustained move above 8,900 during the week could attract momentum & push nifty towards the upper end of the pattern. Trading longs should be maintained with a stop at 8,630,” said Sacchitanand Uttekar, Equity Technical Analyst from Motilal Oswal.

On Monday, benchmark indices ended over 1% lower, amid weak global cues, with rate-sensitive sectors especially financials leading the decline. Investors' focus across the globe has shifted to American politics ahead of the first US presidential debate.

In overseas stock markets, Asian stocks were mixed amid the first US presidential debate between Democrat Hillary Clinton and Republican Donald Trump. US stocks extended losses yesterday as worries about Germany's Deutsche Bank weighed on the financial sector and as investors awaited the US presidential debate.

Crude futures slipped in Asian trade on Tuesday as investors took profits after prices climbed more than 3% in the previous session.

Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 206.40 crore yesterday as per provisional data released by the stock exchanges.

India has become the centre of the world's oil demand growth and the country's economic growth will affect global commodities, Citigroup Inc said in a research note.

Among key stocks, Power Grid, Tata Steel, Tata Motors, TCS and Adani Ports are up 0.8%-1%. On the losing side, Bharti Airtel, ICICI Bank, HDFC, GAIL and L&T are down between 0.2%-1%.

IRB Infrastructure was trading higher by 3% to Rs 265 on the BSE in early morning trade after the company announced that it has received letter of award from the National Highways Authority of India (NHAI) for Rs 2100 crore highway project in Rajasthan and Gujarat.