Domestic indices opened the day on a negative note - ZENMoney

Domestic indices opened the day on a negative note following the global weakness and RBI?s measures. Markets remained volatile ahead ofF&Oexpiry tomorrow and Investors? sentiments were dampened with Reserve Bank of India (RBI)?s announcement of more measures to squeeze liquidity from the banking system to stem rupee?s weakness. Markets remained under pressure for the whole morning session amid heavy selling pressure witnessed in rate sensitive sectors. In post lunch session, with positive support from European counterparts, markets pared some of its losses. However, with continued weakness, indices closed the day in deep red.

On a sectoral front, Banking sector witnessed heavy selling and remained as top looser of the day, after RBI reduced the Liquidity Adjustment Facility (LAF) for each bank from 1 per cent of the total deposits to 0.5 per cent, thus limiting the access to borrow funds from the central bank. Consumer Durables, Capital Goods, Metals, Power, Realty, Auto, Oil&Gas, FMCG and Health Care sectors are other losers of the day. IT sector is the only sector that witnessed buying interest in the market.

The Indian markets are likely to open on a flattish note tracking global market movement but are likely to remain choppy thereafter tracking domestic cues.

On the domestic front, the market might witness heightened volatility ahead of the F&O expiry today. Rupee continues to strengthen on the back of RBI relentless steps to stem its flow since the last few days. The currency is likely to see further appreciation in the coming days as the RBI signalled its intention to keep the rupee stable.

The market will be eying the ongoing earning season for cues. A spate of big name are set to announce their results today. Chief among them are: ACC, Bata, Biocon, ITC, GAIL, IOB, Maruti Suzuki, Thermax, Zee Entertainment,M&MFinancials, Muthoot Finance etc. Stock specific action is likely to be witnessed based on their outcome.

Crude prices are likely to be rangebound in the near term and get support from news of shrinking gasoline stockpiles in the US. However, weak demand outlook from China will keep prices under check.

FIIs continued to remain volatile in the Indian markets. As per provisional figures they net sold equities worth Rs 404.5 crore on Wednesday. Any reversal in this trend can support the markets at lower levels.

For the Nifty 6038, 6085, 6170 are the immediate resistance levels, while 5952, 5915, 5830 are its immediate support levels.

For the Sensex, 20231, 20371, 20630 are the immediate resistance levels, while 19972, 19854, 19595 are its immediate support levels.

Source : Equity Bulls

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