Investors remain cautios ahead of IIP and earnings season - ZENMoney

Domestic indices opened the day on a flat note following the mixed global cues. In early trade, markets found some support after Prime Minister, in a high-level committee meeting, stated that domestic manufacturing capabilities should be created, if the country had to grow at 8-9 % and ensured the possibility measures of it. However, the upside of market been capped as investors turned cautious on report that the IMF has cut India's growth outlook for 2013-14 to 5.6% from the 5.8% it projected in April. Investors' remained trading cautiously ahead of IIP and earnings season to start with Infosys on 12th July. Markets continued their losses in the afternoon session on account of selling in blue chip stocks and taking negative cues from European markets. Indices ended the day with losses.

On a sectoral front, Consumer Durables remained as top gainer of the day led by Titan Ind, on the back of surge in gold prices. IT and Health Care sectors are other two sectors ended the day with marginal gains. Oil & Gas sector continued its selling pressure in the market on the back of rupee depreciation followed by Auto, Realty, Power, Capital Goods, Metals, FMCG and Banking sectors.

Domestic indices are likely to open with a positive bias tracking global market movement but will remain choppy thereafter tracking domestic cues.

Back home persistent depreciating rupee and soaring crude prices will be the key to the market movement in the near term. The market would also be eyeing the earning season to begin this week for cues.

FII flow will be another key indicator for market movement. The FIIs have been selling massively in the Indian markets since last month. However, it has seen a slight pickup in the last two days. As per provisional figures they net bought equities worth Rs 75.46 crore on wednesday. Any pick up in the FII flow can boost market sentiment.

Crude will continue to trade higher as US stockpiles fell unexpectedly. Further, geopolitical tensions will keep prices high. Rising crude prices will be negative for the Indian market already struggling with sliding rupee, which is trading at record lows.

For the Nifty 5864, 5910, 5986 are the immediate resistance levels, while 5786, 5756, 5679 are its immediate support levels.

For the Sensex, 19455, 19615, 19883 are the immediate resistance levels, while 19186, 19077, 18809 are its immediate support levels.

Source : Equity Bulls

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