The first thought that comes across is, “Is it the 10,000 day? That 10,000 that we lost a month ago on 8th August is most likely to be touched today.
What are the reasons?
1. North Korea did nothing foolish on 9th September, its foundation day. Markets across the World closed nervous the previous day thinking that North Korea will test one more missile and Korean peninsula will be tense. Nothing of that sort happened.
2. Hurricane Irma was much much weaker than it thought out to be. It was not a Category 5 but it made a landfall last evening as Category 2 hurricane with wind speeds around 120-140kmph vs expected 300-320kms. That will keep crude prices under check and lot of relief across commodities market.
3. On the domestic front the GST council meeting at Hyderabad on 9th September kept the cess on luxury cars between 2%-7% vs expected 10%. Small cares and Hybrid cars were not hiked while the medium cars cess went up by 2%, luxury cars by 5% and SUVs by 7%. This will act as a positive and will keep the markets in good cheer.
How will the NIFTY open?
Asian markets indicate a huge gap up for NIFTY above 9950 barrier and we could see a open around 9980 levels. That gives the real hope of NIFTY touching 10,000 again somewhere in the morning itself! What happens after that needs to be seen. Today’s opening means the range of 9850-9950 will be decisively broken. Now will it close above that? Doubtful. If buying happens and NIFTY stays above 9980 then it could stay and close above 9950 levels. The other scenario is once 10,000 is reached then selling starts and NIFTY comes back to 9950 levels and close. That is indeed a big negative for a market that’s starting on this note.
On IPO front, Bharat matrimony after failing once is coming up with an IPO again. The IPO has 37.6 lakh shares on offer with price band between 983-985. Too costly for my liking and AVOID! On stock picking front, IGL is one stock that caught my attention and which has some legs to go up.