Eye on F&O expiry, ICICI Bank & PNB - Consortium

Markets posted slight gains on Wednesday as Reliance Industries Ltd recovered from a four-session losing streak, while ICICI Bank Ltd rose a day ahead of its quarterly earnings. However, the sentiment remained weak even after the RBI lowered its key policy rate on Tuesday, as the central bank struck a cautious note on further easing, citing concerns about the high current account and fiscal deficits and inflationary risks.

Market participants are now focusing on the government's actions ahead of the budget presentation in late February, while earnings from companies, such as ICICI Bank, PNB etc this week, will determine the short-term direction of the market. The Sensex rose 0.07 %, or 14.10 points, to end at 20,005, closing slightly above the psychologically important 20,000 mark after briefly hitting a two-year high on Tuesday.

The Nifty rose 0.1 %, or 5.85 points, to end at 6055.75.Reliance Industries rose 1.9 % on value buying after falling 4.3 % in the last four trading sessions on concerns that an expected increase in gas prices may be less favorable to private companies. ICICI Bank gained 1 % for a fourth day, marking a cumulative gain of 4.1 %, as investors bet on good earnings when India's biggest private sector lender unveils results on Thursday. Axis Bank rose 1.75 %, marking a third day of gains, on the back of strong demand in its share sale of up to $1 billion.

Shares in Tata Steel ended 1.8 % higher after Citigroup retained its 'buy' rating and raised its target price to Rs 508 rupees from 430, citing "inexpensive" valuations, a bottoming out of earnings in Tata Steel Europe and more resilient volumes than other Indian steelmakers. Separately, Morgan Stanley added Tata Steel to its regional and emerging markets focus lists, saying the company offers "a good restructuring story" due to its rising capacity, improved sales volumes and the commissioning of a new coke oven battery.

The market may remain volatile today, as January F&O contracts expire today. Nifty traded in a narrow range throughout the session and settled marginally above its previous close. Consolidation above 6000 levels will aim Nifty for higher levels. Global clobal cues for today are mixed and movement in Indian markets is likely to be stock specific with results season underway.Nifty is lacking direction in the short term so oone must focus on individual stocks.short term support lies at 6040/6010 and resistance is seen at 6070/6100.

Source : Equity Bulls

Keywords