Stock market today - a forecast

Taking cues from the global market, Indian market is all set to open on a high today. Dow Jones Industrial Average rose 78.56 points, registering gain for the fifth straight day. Nasdaq Composite leaped 35.34. Most of the Asian markets, except Japan are trading high at this point of time. However, there has been no such negative news as of yet.

Indian markets seem to be facing a stiff resistance at 5900 level. Technical charts also points to the fact that the market is in an overbought position and is facing resistance for making headway. However, if the Banking Regulation Bill passes in the parliament with the amendment of allowing banks to participate in commodity futures trading, then it will give a positive signal to the market. Which will result in a rally of banking stocks. The Government plans to sell a 10% stake in National Mineral Development Corporation (NMDC) on Wednesday is bound to boost the market.

Thus it’s for sure that the market will open on a high today and under most likelihood will hold on to its gain. Thus there is a buy on every dip. There is every possibility that the market will be able to break its trend of range bound trading and will be able to move forward.