Indian Markets to open positive on strong Asian Cues - Consortium

Nifty declined marginally by 9.55 points to close at 5,887.40. Markets recovered partially at the end of the day on account of short covering. Overall market was lackluster and range bound after end of quarterly result on lack of major news flow before the Budget announcement on 28th February. Disappointing quarterly result and weak global cues pulled down the market. However, there was only silver ling that WPI cool down to 38-month low.

Metal stocks continued their weak trend after most of the corporates reported poor results. Banking stocks witnessed fresh buying from the intra-day low. There was media report that the UB group will use proceeds of Diageo deal to cut Kingfisher loans. UB group is in talks with lenders to bring down bank exposure. SBI gained by 1% to close at Rs2233. Axis Bank surged by 1% to close at Rs1449 after touching day's low of Rs1420. Others like Allahabad Bank, IDBI, IDFC, PFC and REC recovered smartly from the intraday lows.

Tech, Pharma and Realty stocks declined while Auto stocks witnessed fresh buying. Reliance witnessed biggest loser among the Oil & Gas sector (Index down 0.8%). Reliance declined by 1% to close at Rs846 after touching day's low of Rs834. However, upstream companies - Oil India and ONGC have gained marginally.

Auto stocks witnessed fresh buying (Index up 0.4%). Tata Motors recovered smartly from the intra-day low. It has gained by 2.4% to close at Rs304.5 after touching day's low of Rs288. However M&M, Maruti and Bajaj Auto (down 1.6%) declined marginally. The Nifty maintained the lower top, lower bottom pattern. Opening markedly lower at 5869 , the Nifty made an attempt to move up, but, failed at 5899 and came down on late selling to go down to 5853, before ending at 5887, down a modest 9 points. The broad market had a negative stance with advances trailing declines 595 to 915.

For the day coming by, Indian markets to open slightly on positive note on strong Asian cues. The result season is over which was not too great. The next big trigger is budget be presented in the Parliament on 28 February. It is expected that government will announces more economic reforms. FM has already reiterated to keep fiscal deficit at 5.3% of GDP. Markets on Friday witnessed some value buying and short covering. We see this trend to continue today. Nifty resistance lies at 5900/5925 and support at 5870/5850.

Source : Equity Bulls

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