Indian Markets to open subdued on weak Asian cues - Consortium

Nifty on Friday gained by 26.65 points to close at 5719.70. Market was stable for most part of the day after a sharp decline on Budget day. Government clarification on GAAR issue did not have any major in the market. There was stock specific action in the market. Many frontline stocks like DLF, PFC, REC nosedived by 4-5%. MCX slipped by 5% after the government imposed 0.01% CTT on nonagri commodities.

Auto stocks witnessed fresh buying after impressive monthly sales and marginally higher duty on diesel SUVs (Government imposed duty on diesel SUV from 27% to 30%).

Select banking stocks witnessed fresh buying. The government announced infusion of INR140b in FY14 in PSU banks towards recapitalization. Additional tax rebate on interest of INR100,000 for 1st home loan under INR2.5m generated buying interest in HDFC, LIC Housing and ICICI Bank, up by 1-3% each.

FMCG major ITC declined by 1% to close at Rs291 after increase in specific excise duty on cigarette by 18%. Titan witnessed a smart rally as there was no hike in duty on imported gold.Rupee saw depreciation against Dollar which is adding up to negative sentiments.

Nifty Futures closed at a premium of 9 points. Nifty march 6000 call saw an increase of 5.63 lac with total OI at 59.14 lac. Nifty march 5900 call saw an increase of 7.58 lac OI and its total OI base stands at 52.55 lac. Nifty march 5700 Put saw an increase of 5.67 lac OI and its total OI stands at 67.28 lac. Nifty march 5600 Put saw an addition of 9.57 lac and its total OI stands at 48.50 lac. This suggests that Nifty could be headed down and support should emerge at 5600-5700. Any upsides could see resistance around the level of 5900-6000. India VIX closed at 14.06 down 0.80.

For the day coming by, Indian markets are expected to open on a cautious note on mixed global cues. US Markets closed strong on Friday but Asian markets especially Chinese markets are trading lower today as a sector-wide decline in Chinese property stocks damaged sentiment. Indian markets are trading below 10, 20, 50, & 100 moving averages but is above 200 days moving average. In such scenario, we expect nifty to remain muted and may exhibit only short term bounce. The medium term trend still remain uncertain.

Source : Equity Bulls

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