Domestic markets are likely to open the week on a sideway note tracking global market movement - ZENMoney

Domestic indices opened the day on a positive note following firm global cues. Markets witnessed support from IT index on the back of better than expected results from IT major TCS. However, the gains in the markets were capped as international credit rating agency Moody's has warned that the fall in rupee may constrain country's sovereign credit rating, as it will exacerbate inflationary and fiscal pressures. FIIs being net sellers for the past 2 days and fears on RBI's policy action in upcoming monetary meet also weighed on investors' sentiments. Investors' remained cautious on Prime Minister's statement that, the Indian economy is going through a difficult period and is likely to grow slower than previously expected 6.5% for the year ending March 2014. Markets added gains in the early afternoon session with buying witnessed in front liners, but failed to carry the momentum and indices ended the day on a flat note.

On a sectoral front, IT, Auto and Oil & Gas sectors were the gainers of the day with IT leading the index on the back of Positive results by TCS. CG, Power, Banks, Realty, CD, Health care and Metal sectors are the major losers of the day, while FMCG sector ended the day marginal in the red.

Domestic markets are likely to open the week on a sideway note tracking global market movement and remain rangebound thereafter tracking domestic cues.

In the absence of any major domestic events, the market would be eyeing the ongoing quarterly results for cues. Asian Paints, Blue Star, L&T, ING Vysya Bank are among the major companies which will declare their results today. Stock specific action will be seen based on their outcome.

Falling rupee and rising crude prices are the two major threats for the markets in the near term. Crude has risen to a 16 week high in the last two week on improving economic outlook in the US, which has raised optimism about demand pickup. Further increase in the crude prices will affect the country's fragile financial position and can result in a deep correction in the market.

FIIs continued with their selling in the Indian market and as per SEBI records, they pulled out more than Rs 17,000 crore (both debt and equity) from the Indian capital markets so far in July (till 19th). Further selling in the market can result in a deep correction in the market.

For the Nifty 6058, 6086, 6132 are the immediate resistance levels, while 6010, 5992, 5945 are its immediate support levels.

For the Sensex, 20234, 20318, 20464 are the immediate resistance levels, while 20088, 20027, 19881 are its immediate support levels.

Source : Equity Bulls

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