Nifty may trade range bound between 8360-8520: Magnum

Magnum Equity Broking's Fundamental Report:

The BSE Sensex and Nifty rose to record highs on Monday as state-run lenders rallied after State Bank of India reported better-than-expected asset quality in July-September, raising hopes for a revival in a sector laden by bad loans.

The BSE Sensex rose as much as 0.57 percent to an all-time high of 28,205.71. The index ended up 0.47 percent. The Nifty closed 0.49 percent up after earlier hitting a record high of 8,438.1.

State Bank of India led the rally in state-run lenders, ending 5.5 percent higher after earlier hitting its highest intraday level since April 2011. SBI's results attracted investors to state-run lenders, which have lower ownership and valuations relative to private sector rivals. Bank of Baroda rose 4.2 percent, while Punjab National Bank ended up 2.7 percent. Sentiment also got a boost after trade deficit in Asia's third largest economy narrowed to $13.35 billion in October from USD 14.25 billion in September. Continued foreign buying also helped sentiment.

Overseas investors bought shares worth 6.96 billion rupees on Friday, bringing their total purchase in stocks to USD 15.24 billion so far in 2014. US stocks were little moved on Monday, with the S&P 500 recording a 42nd record close of the year, as comments by European Central Bank President Mario Draghi helped offset data that unexpectedly showed Japan's economy in a recession. A majority of Asian bourses traded higher early Tuesday, with the exception of Sydney and mainland indices which were dragged down by a steeper-than-expected fall in China's new home prices.

Global cues are mixed today, with them SGX Nifty is showing 4 points cut in morning trade indicating that Indian market may open flat today and Nifty is expected to trade rangebound between 8520 and 8360.

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