FIIs continue to pump in money into the Indian Markets - ZEN Money

Domestic indices opened the session on a positive note following firm global cues. Strong fund flows from FIIs for past few days have boosted the investors' confidence. Sentiments remained positive with support on hopes of improvement in macroeconomic situation with softening of crude oil and gold prices and easing inflation. However, initial gains been pared in the afternoon session with some profit booking witnessed in the markets. Downside of market been capped after economic affairs secretary statement that there is no case for downgrading India's sovereign credit rating, after Standard & Poor's reiterated its negative outlook on the country's credit rating. Thus by witnessing profit booking after indices hitting 2.5 year highs, markets closed the day with marginal losses.

On a sectoral front, Auto and IT sectors are the top gainers of the day while Health care and Consumer Durables sectors witnessed heavy selling pressure. Banking sector, that witnessed buying interest in the morning session after RBI proposed a review of all banking licences from the ‘fit and proper' angle, following the allegations made by Cobrapost, which involves assessment of the promoters, management, CEOs of even the existing banks, pared gains in the afternoon session amid profit booking. Other sectors like, Oil&Gas, Realty, Capital Goods, Power and FMCG also ended the day with losses.

- The domestic markets are likely to open on a flat note and remain range bound thereafter tracking both domestic and global events.

- On the domestic front, the rupee movement and FII flows will be the key drivers for the market movement in the short term.

- The market will also take cues from the ongoing earning season. Few companies coming out with results today are Astra Zeneca, Deccan Cements, Subex, Tech Mahindra etc. Stock specific action can be witnessed in these counters based on their outcome.

- Crude prices are likely to inch up on concerns that the unrest in Syria could spread to other MIddle Eastern countries. Rupee too will remain under pressure in the short term due to strong dollar.

- FIIs continue to pump in money into the Indian markets. As per provisional figures, they net bought equities worth Rs 753.37 crore in the Indian market on Monday. Continuation of this trend can take the markets to new levels

- For the Nifty 6209, 6261, 6345 are the immediate resistance levels, while 6125, 6094, 6010 are its immediate support levels.

- For the Sensex, 20383, 20542, 20799 are the immediate resistance levels, while 20125, 20027, 19770 are its immediate support levels.

Source : Equity Bulls

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