Market may remain volatile

Stocks may continue to remain volatile as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010. The market staged a decent rebound on Tuesday, 23 November 2010 after a 3% intraday slide.



In the near-term, year-end profit taking may continue to weigh on the domestic bourses. A number of stocks have clocked decent to strong gains this year. Funds based in US and Europe follow calendar year as their accounting year. The market has lost ground soon after hitting a record closing high early this month.

South Korean stocks fell on Wednesday morning, reacting to the exchange of shell fire with the North, but they soon moved off their lows on a view that an all-out war between the two nations remains unlikely. In other Asian markets, the key benchmark indices in Hong Kong, China, and Singapore were up by between 0.31% to 0.7%.

Hong Kong recovered from Tuesday's 2.7% drop in the Hang Seng Index as concern over Korean tensions and Chinese policy tightening eased a little and as mainland Chinese shares moved higher.