Sensex opens flat with a positive bias, Nifty holds above 8,850 level

The Indian stock market on Tuesday opened flat on the back of in Asian markets as a holiday in the US left investors with few options to trade.

At 9.40 AM, the S&P BSE Sensex was trading 28,682, up 20 points while the Nifty50 was trading 8,884, up 5 points.

Brokers said that a pick-up in buying activity coupled with covering-up of short position by speculators in the face of February month's expiry in the derivatives segment on Thrusday had a positive impact too.

"For the coming trading session, the Nifty is likely to head towards 8920 - 8969 after making a move above Fridays high of 8896.45. We anticipate this to happen and hence, traders are advised to keep holding directional long positions by now trailing a stop loss at 8700," said an Angel Broking report.

All sectoral indices, led by metal, IT and power, were in the green, gaining up to 2.04 per cent.

Tata Steel and Tata Motors were the top gainers in early trade clocking as much as 1.50 per cent on the BSE.

Among the laggards were Bharti Airtel that fell nearly 2 per cent followed by ITC and Coal India.

Buzzing stock

As per media reports, Tata Tele may join the merged entity of RCom-Aircel and MTS.

BSE has sought clarification from both the companies with reference to the report that Tata Tele is in early talks to join RCom Aircel MTS combine.

At 10 AM, Tata Teleservices (Maharashtra) Ltd was trading 2.48 per cent higher while Reliance Communications gained over 1 per cent on Tuesday.

Global Markets

The Asian markets were uptick with China's Shnaghai Composite gaining 0.86 per cent, Hang Seng Index rising 35 points and Japan's Nikkei gaining 137 points.

Wall Street remained closed for the Presidents Holiday on Monday.