Domestic indices are likely to open sideways tracking global market movement - ZENMoney

Domestic indices opened the day on a positive note following firm global cues. Markets witnessed some support with Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan's statement that the Indian economy will grow by 6 % this fiscal on account of a good monsoon. Investors' are keenly waiting for Reserve Bank of India's first-quarter review of the monetary policy on July 30, which will be key trigger for the market in the near term. Markets continued to trade in positive mood for the whole day with buying in select front liners. However, minor part of gains were pared in afternoon session as the investors remained cautious after Bank of America Merrill Lynch (BofA-ML) in its latest report stated that India's Current Account Deficit (CAD) is likely to remain high until 2015. Indices ended the day with gains.

On a sectoral front, all the sectors traded in green with Consumer Durables witnessing heavy buying interest led by jewelry stocks after RBI offered relief to domestic sellers by lifting restrictions on credit deals. FMCG, Realty and Banking sectors are other sectors which outperformed the indices. Metals, Oil&Gas, Power, IT, Auto, Capital Goods and Health Care are other sectors traded marginally in the green by the end of the day.

Domestic indices are likely to open sideways tracking global market movement but will remain volatile thereafter tracking domestic cues.

The RBI's tightening measures in recent days have reduced volatility in the rupee to an extent lifting domestic sentiments. More pro active measures will be needed by both the government and the RBI to curb the rupee weakness.

The market would be eyeing the ongoing quarterly earnings for further cues. Cairns India, Central bank, Yes Bank, Hero Motocorp, United Phosphorous etc are among the key companies that would declare their results today. Stock specific action is likely to be witnessed based on their outcome.

Crude prices continue to remain high but rising speculations that the Fed would pare down its stimulus program from september would keep any upside in check. Any fall in crude prices will be positive for the Indian market.

After weeks of continuous selling, the Indian market saw some positive action from the FIIs. As per provisional figures they net bought equities worth Rs 211.35 crore on Tuesday. Continuation of this trend can provide stability to the market.

For the Nifty 6094, 6110, 6142 are the immediate resistance levels, while 6061, 6045, 6013 are its immediate support levels.

For the Sensex, 20353, 20403, 20504 are the immediate resistance levels, while 20251, 20199, 20098 are its immediate support levels.

Source : Equity Bulls

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