Sensex, Nifty start on a cautious note; ICICI, HDFC, Axis top losers

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NEW DELHI: The S&P BSE Sensex started on a cautious note on Tuesday tracking muted trend seen in other Asian markets. The fall in the index was led by losses in ICICI Bank, HDFC, Axis Bank, and Lupin.

The Nifty50 was trading above its crucial level of 8,600 supported by gains in realty, power, oil & gas, metal, consumer durable, and telecom stocks.

At 09:20 am, the 30-share index was trading at 28,089, down 10 points or 0.03 per cent. It touched a high of 28,141.49 and a low of 28,063.95 in morning trade.

The Nifty50 was trading at 8,629 down 6 points or 0.07 per cent. It touched a high of 8,643.80 and a low of 8,620.45 in the first 30 minutes of trade.

The S&P BSE Midcap Index was up 0.31 per cent and BSE S&P Smallcap Index was trading 0.41 per cent higher.

Gail India (up 1.1 per cent), Sun Pharma (up 0.7 per cent), NTPC (up 0.64 per cent), Tata Steel (up 0.52 per cent), and Power Grid (up 0.36 per cent) were the major Sensex gainers.

Lupin (down 1 per cent), Dr Reddy’s Laboratories (down 0.7 per cent), HDFC (down 0.51 per cent), ICICI Bank (down 0.48 per cent), and Hero MotoCorp (down 0.38 per cent) were the major Sensex losers.
Here’s are a couple of factor that are influencing the market today:

F&O rollovers at 24%: Data showed markewide rollovers on D-3 stood at 24 per cent till Monday compared with an average of 28 per cent in the past three F&O series. Nifty futures rollover, on the other hand, stood at 26 per cent, lower than average rollovers of 33 per cent seen in the last three F&O series.

Among the sectors, pharma (28 per cent), engineering and FMCG (27 per cent each) have witnessed reasonably good rollovers compared with the other sectors on D-3. High rollovers were seen in Jindal Steel (37 per cent) and SBI (34 per cent). Rollover in telecom (16 per cent) and cement (18 per cent) has been relatively weak,” Edelweiss Securities said in a note.

Cues from Singapore muted: In morning trade, Nifty50 futures on the Singapore Stock Exchange were trading 4 points higher at 8,641, indicating a flat opening for the domestic market.

“The strategy over here is to trail stop losses from 8,480 be rather than being more circumspect. Nifty50 has crossed a decisive resistance at 8,580 on Monday and has already built a cushion of approximately 50-60 points on spot level.

Nifty50 to face resistance at 8,660: Some experts said the Nifty50 has the potential to see further gains, but the index is likely to face resistance in the near future.

The 8,660 level is simply confluence of various levels such as Fibonacci and Gann coupled with trendlines. In the short term, the immediate resistance for Nifty stands at 8,660, which if breached may take us to the next resistance at 8,710. If it doesn’t breach the resistance, we may see it touch back the 8,550 level. Range play is likely ahead of the expiry,” said Mustafa Nadeem, CEO at Epic Research.

Earnings to trigger stock-specific action: A handful of companies are going to announce March quarter Earnings during the day. Maruti Suzuki, Dr Reddy’s Labs, Ambuja Cements, IDFC twins, TVS Motor and Zee Entertainment will be some of the companies announcing their June quarter numbers during the day.

As many as 328 BSE-listed companies are scheduled to report their numbers this week. In all, 78 companies will announce their results on Saturday. A host of PSU banks will announce earnings this week and analysts believe poor numbers, if any, could hurt market sentiment.

Asian markets stay mixed: Most Asian markets were trading lower this morning. Japan’s benchmark Nikkei was trading 1.53 per cent lower at 16,370.05. China’s CSI300 rose 0.53 per cent to 3,248.07. Other Asian indices, including Hong Kong’s Hang Seng (down 0.08 per cent), South Korea’s Kospi (up 0.15 per cent) and Taiwan’s TWSE (down 0.15 per cent), were trading higher.

US markets ended lower on Tuesday: The Dow Jones industrial average closed the day at 18,493.06, down 0.42 per cent. The S&P500 index fell 0.3 per cent to 2,168.48.

The Nasdaq Composite index settled down 0.05 per cent at 5,097.63.

All eyes would now be on two-day Fed meeting which begins later in the day.

“Across the world, if you look at even Dow Jones or FTSE, markets continue to go up. Indian market is also following the global trend. Specific to India, it has been a good monsoon. Now is the effect of good monsoon seen in the quarterly results? The answer is no. When will it show in the results? It is at least two quarters away,” said R Sreesankar, Head Institutional Equities at Prabhudas Lilladher.