Indian Markets likely to open on flattish note - ZENMoney

Domestic indices opened the day on a negative note following weak global cues. Markets remained cautious ahead of the expiry of July derivative contracts and on reports stating that Foreign Institutional Investors (FIIs) net sold shares worth Rs 404.50 crore in the previous trading session. Indices continued the downside pressure in the morning session and stock specific movements were witnessed on the back of the ongoing quarterly results. In afternoon session, Markets witnessed further pressure with negative cues from European counterparts amid selling in front line blue chip stocks. Indices failed to recover and ended the day in deep red.

On a sectoral front, major sectors of the indices remained in red except Tech and Auto sectors.FMCG is the major loser of the day led by ITC, which reported quarterly earnings where the top line growth was less than market expectations. Other sectors like Metal, Health Care, Oil & Gas, Capital Goods, Power, Banks, Consumer Durables and Realty sectors also witnessed selling pressure. IT sector ended the day with marginal losses.

The Indian markets are likely to open on a flatish note mirroring both global and domestic market movement.

On the domestic front, the rupee has been trading firm since the last few days on the RBI's measures to curb rupee speculation. The RBi is planning further tightening measures and as part of that move, it is auctioning bonds worth Rs 15,000 crore on Friday.

The market would take direction from the ongoing quarterly earnings. Bank of India, BEL, CESC, HUL, Indraprastha, Nestle, JB Chemicals, Tata Communications, Wipro 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 have dropped for the second day in the international market, its biggest retreat in a month on news of US crude output surging to a 22 month high. Further fall in crude prices will be positive for the Indian market.

FII flow continued to fall and as per provisional figures they net sold equities worth Rs 442.94 crore on Thursday. Continuation of this trend can result in further volatility in the market.

For the Nifty 5967, 6026, 6121 are the immediate resistance levels, while 5872, 5837, 5743 are its immediate support levels.

For the Sensex, 20023, 20241, 20587 are the immediate resistance levels, while 19675, 19546, 19199 are its immediate support levels.

Source : Equity Bulls

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