Domestic Indices are expected to open on a sideways note tracking mixed global cues - ZEN Money

Domestic indices opened the session on a gap up note following firm global cues. Investor sentiments remained positive after Finance Minister said that he would set up a cell in his office to monitor and resolve the issues for speedy completion of the stalled infrastructure projects. Markets also witnessed support after the global rating agency Standard & Poor's said that India is projected to grow by 6% in the current fiscal. Indices rallied firm on sustained buying after WPI inflation eased to over three years low, giving space for the Reserve Bank to cut interest rates, amid a firm trend in the global markets. Markets continued to rally in the afternoon session on account of buying in frontline counters and ended the day at 28-month high with huge gains.

On a sectoral front, With optimistic mood continuing in the market, all the sectors ended the day with gains. Rate sensitive sectors like Realty, Banks, Capital Goods and Auto witnessed buying on the back of Reserve Bank of India's Governor Duvvuri Subbarao statement that the central bank will take note of falling inflation when discussing potential interest rate cuts. Oil & Gas, Health Care, Metal, Consumer Durables, Power, FMCG and IT sectors also ended the day with gains.

- Domestic Indices are expected to open on a sideways note tracking mixed global cues.

- The market is expected to take support from the ongoing earning season along with hopes on RBI to continue its rate cut move in the next monitory policy.

- Corporate earning from companies like Arvind Ltd, Bajaj Holdings, G N F C, Guj Alkalies, GSFC, Mangalore Chem, Reliance Capital, Aarti Inds, Satyam Computer, TTK Prestige, Kalpataru Power, Orbit Corpn, Bajaj Auto, DB Corp etc are likely to dictate the market movement. Stock specific action is likely to be witnessed based on their outcome.

- Crude is expected to trade in narrow range on the back strengthening dollar against basket of currencies and demand concerns. Crude is likely to get support from the strong equity markets.

- A marginally positive close in the Rupee during previous session on the back of gains in domestic shares and continuing dollar inflows, is expected to get support on the hopes of RBI monetary policy

- FIIs continued to be net buyers in the Indian market. As per provisional figures, they net bought Rs.1646.95 on Wednesday. Continuation of this trend can provide support to the market.

- For the Nifty 6197, 6246, 6385 are the immediate resistance levels, while 6058, 5969, 5831 are its immediate support levels.

- For the Sensex, 20371, 20529, 20972 are the immediate resistance levels, while 19926, 19640, 19196 are its immediate support levels.

Source : Equity Bulls

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