Domestic indices are likely to open sideways - ZENMoney

Domestic Indices opened the day on a positive note following RBI's surprise move of easing the liquidity tightening measures it had initiated earlier, by reducing the marginal standing facility (MSF) rate by a further 50 basis points to 9.00%. Though markets pared their initial gains during the morning session, some buying interest witnessed in the afternoon session. Markets ended the day with gains.

On a sectoral front, Realty and Capital Goods sectors are the major gainers of the day followed by FMCG, Power, Banking and Consumer Durables sectors. Health Care, Auto and Oil&Gas sectors are among others that traded in green. Metal sector is the loser of the day followed by IT sector.

Domestic indices are likely to open sideways with negative bias mirroring global market movement and remain choppy thereafter tracking domestic cues. The ongoing worries about debt ceiling and mixed cues coming in from global markets will weigh on market sentiments in the near term.

Back home, the steep downgrade of the country's growth by the International Monetary Fund (IMF) will weigh on market sentiments today. The market would also await the Jul-Sep earning season which kickstarts from Friday for cues.

Crude prices are likely to remain range bound and will keep track of the events unfolding in the US regarding the the debt default issue.

FII flow has remained in the positive terrain although the pace of the flow remains volatile. As per provisional figures, they net bought equities worth Rs 226.32 crore on Tuesday.

For the Nifty 5970, 6010, 6079 are the immediate resistance levels, while 5900, 5872, 5803 are its immediate support levels.

For the Sensex 20111, 20238, 20451 are the immediate resistance levels, while 19896, 19809, 19596 are its immediate support levels.

Source : Equity Bulls

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