FII flow continued to be in the negative terrain for most part of last week - ZENMoney

Domestic indices opened the day on a positive note following firm global cues. Markets witnessed some support with Planning Commission Deputy Chairman Montek Singh Ahluwalia's statement that the economy is likely to grow at 5.5 percent this financial year. Also, net direct tax collections, which went up by 10.37 per cent to Rs 1.17 lakh crore during the April-July period of current fiscal year as against Rs 1.06 lakh crore recorded during same period of previous year supported the indices. However, the upside of the market was capped over investors' worries on depreciating rupee. Markets witnessed stock specific action on the back of reported corporate earnings. Amid volatility over Govt. policies to be announced soon, markets witnessed buying in the afternoon session, also by taking positive cues from European counterparts, indices ended the day in gains.

On a sectoral front, Oil & Gas and Health Care sectors are the only losers of the day. Oil & Gas sector witnessed selling after Parliamentary panel has recommended review of the Government's decision to raise gas prices and said that Reliance Industries should deliver its shortfall in production of the fuel at the old rate. Metal and Realty sectors are the major gainers of the day followed by Power, Auto, Banks, IT, FMCG, Consumer Durables and Capital Goods.

Domestic Indices are expected to open sideways tracking global market movement and remain volatile thereafter tracking domestic cues. Globally, the markets will be range bound this week ahead of a string of economic data releases in the US during the week.

Back home, the rupee's continued weakness will be the key concern for the market and its movement will dictate market direction in the near term. The market will also be eyeing the IIP and consumer price inflation data that would be released after the market hours today.

Stock specific action is likely to be witnessed in the market based on the outcome of the Q1 results from some industry majors today such as SBI, ONGC, HPCL and DLF. Others to announce their results today are Bajaj Hind, Britannia, Hathway Cables, India cements, India Hotels, Jyothy Labs, Marico and Tech Mahindra.

Crude is likely to be range bound and take support from better than expected economic data from China, the second largest consumer of oil after the US.

FII flow continued to be in the negative terrain for most part of last week. As per provisional figures FIIs net sold equities worth Rs 395.78 crore on Thursday (8th Aug). Any reversal in the FII flow can result in improvement in sentiments.

For the Nifty 5593, 5619, 5687 are the immediate resistance levels, while 5524, 5483, 5416 are its immediate support levels.

For the Sensex, 18872, 18955, 19162 are the immediate resistance levels, while 18664, 18539, 18331 are its immediate support levels.

Source : Equity Bulls

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