Investors remained cautious ahead of Infosys' Q2 results - ZENMoney

Domestic Indices opened the day on a positive note following Planning Commission Deputy Chairman statement that India's GDP will see a turnaround in the coming quarters on account of various steps taken by the government to spur growth as well as good agricultural production. However, investors' sentiment remained cautious ahead of Infosys' Q2 earnings and IIP data scheduled to be released tomorrow. Also, International Monetary Fund (IMF) statement that the country's fiscal deficit is expected to increase to 8.5 % of the GDP this financial year, mainly due to the downward revision in GDP growth, depreciation of rupee and higher global oil prices had capped the market upside. Markets continued to trade range bound in afternoon session ignoring positive cues from European markets and ended the day on a flat note.

On a sectoral front, Auto sector is the top gainer of the day followed by Metal, IT, Health Care, Power, Realty, Capital Goods and Consumer Durables sectors. Banking sector is the top loser of the day, while Oil & Gas and FMCG ended the day with marginal losses.

Domestic Indices are expected to open sideways with a positive bias tracking global market movement and remain rangebound thereafter tracking domestic cues. Optimism over an end to the US debt ceiling impasse will lift global market sentiments up.

Back home, the earning season kick starts today with the results of Infosys. The market would be taking direction from the outcome of the results. The market would be especially watch out for the guidance from the company which will provide insight to the overall sector outlook. Stock specific action is likely to be witnessed in the sector based on the outcome of the result.

The market will also be awaiting the IIP data which would be released after the market hours today.

Crude is likely to be range bound and take support from signs of an end to the US debt ceiling woes.

FII flow have remained in the positive terrain for the sixth consecutive session. As per provisional figures they net bought equities worth Rs 614.27 crore on Thursday. Continuing of this trend can take the markets higher.

For the Nifty 6044, 6066, 6120 are the immediate resistance levels, while 5989, 5957, 5903 are its immediate support levels.

For the Sensex 20353, 20433, 20620 are the immediate resistance levels, while 20164, 20056, 19868 are its immediate support levels.

Source : Equity Bulls

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