Volatility may continue ahead of expiry; global cues stable

Firm global cues are likely to support market on Wednesday. While eye will be on August Future and Options (F&O) expiry tomorrow, 8580-8600 is an important support zone. Volatility is likely to stay till expiry.

The 30-share BSE Sensex closed at 27,990.21, up 4.67 points from its previous settlement. The 50-share NSE Nifty gained 3.45 points at 8,632.60 after trading in a range of 8,580-8,642.

India is likely to get rights to tax capital gains from Singapore from April next year but there is no clarity yet on grand-fathering. The government is also firm on GAAR rollout from next fiscal.

Asian stocks consolidated a recent run of gains on Wednesday, helped by Wall Street's rise overnight, even as oil prices slid on trade data showing a surprise build-up in US crude stocks.

MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS eased 0.1 percent in early trades. It has risen more than 14 percent since late June to hit a 1-year high last week. The Dow Jones industrial average .DJI rose 17.88 points, or 0.1 percent, to 18,547.3, the S&P 500 .SPX gained 4.26 points, or 0.2 percent, to 2,186.9 and the Nasdaq Composite .IXIC added 15.48 points, or 0.3 percent, to 5,260.08.

The upbeat housing data prompted markets to extend their search for further clues to whether the Federal Reserve will raise US interest rates this year. Global central bankers will gather in Jackson Hole, Wyoming, later this week with investors focused on a speech by Fed Chair Janet Yellen on Friday.

Oil prices fell as an unexpected build in US crude stocks weighed on markets, along with concerns that Chinese crude demand could falter as Beijing clamps down on alleged tax evasion in the oil industry.

The dollar index held steady as as investors reassess the outlook for US monetary tightening.