FII flow continued to be in the negative terrain - ZENMoney

Domestic indices opened the day on a negative note following weak global cues. Investors' sentiment remained cautious ahead of Reserve Bank of India's policy announcements scheduled tomorrow. Markets recovered from losses by noon session withFMstatement that RBI's recent liquidity steps are not expected to lead banks to increase lending rates. Also his statements that India is still the second fastest growing economy and hope of achieving 6% growth this fiscal supported indices. However, markets failed to keep the momentum in afternoon session despite positive support from European counterparts and heavy selling was witnessed in front liners. Indices ended the day in losses.

On a sectoral front, FMCG sector is the major loser of the day followed by Metals, Realty, Banks, Oil & Gas, CD, Power and Health Care Sectors. Banking stocks fell over concerns that RBI may hike interest rates to support the rupee from depreciating against the dollar. IT and Auto sector traded in green by the end of the day.

Domestic Indices are expected to open sideways tracking global market movement and remain volatile thereafter tracking domestic cues. Weak data coming in from China and concerns over the future of the stimulus measures ahead of the FOMC meet on July 30-31st will keep markets subdued in the near term.

Back home, the key to the market today will be the RBI's first quarter review of monetary policy. Although the RBI is likely to maintain status quo, the market would be eyeing the central bank's statements which would provide some insight into its future actions. Restoring stability to the Rupee will continue to remain the top priority for the RBI in the short term as indicated by the Macro economic Report which was released yesterday.

The market would be eyeing the ongoing earning season for cues. Dr Reddy's. EID Parry, Havells, IFCI, NTPC, Reliance Infra, Petronet LNG, Jindal Steel, Reliance Power, Syndicate Bank, Shoppers Stop and Trent are some of the companies that would declare their results today. Stock specific action is likely to be witnessed in these counters based on their outcome.

Crude is likely to be range bound on weak economic indicators from US and concerns over Chinese economy. However, continuing unrest in Egypt have raised concerns about supply disruptions and will bolster prices up.

FII flow continued to be in the negative terrain. As per provisional figures FIIs net sold equities worth Rs 231.77crore on Monday. Any improvement in the flow can improve market sentiment.

For the Nifty 5870, 5909, 5969 are the immediate resistance levels, while 5809, 5787, 5727 are its immediate support levels.

For the Sensex, 19706, 19819, 19999 are the immediate resistance levels, while 19525, 19458, 19278 are its immediate support levels.

Source : Equity Bulls

Keywords