Sensex, Nifty50 start on a cautious note; Eicher Motors up 6%

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NEW DELHI: The S&P SBE Sensex slipped over 50 points in morning trade on Friday, led by losses in ICICI Bank, Infosys, HDFC Bank, and Bharti Airtel.

The Nifty50 was trading around its crucial level of 8,650 supported by gains in power, oil & gas, metals, capital goods, and auto stocks.

At 09:20 am: The 30-share index was trading at 28,156, down 60 points or 0.21 per cent. It touched a high of 28,233.47 and a low of 28,132.56 in morning trade.

The Nifty50 was trading at 8,653 down 12 points or 0.15 per cent. It touched a high of 8,670.35 and a low of 8,643.00 in the first 30 minutes of trade.

The S&P BSE Midcap Index was up 0.36 per cent and BSE S&P Smallcap Index was trading 0.20 per cent higher.

Tata Steel (up 1.04 per cent), Coal India (up 0.8 per cent), Adani Ports (up 0.73 per cent), Sun Pharma (up 0.6 per cent), and Axis Bank (up 0.55 per cent) were the major Sensex gainers.

Bharti Airtel (down 1.7 per cent), ICICI Bank (down 1.2 per cent), SBI (down 0.87 per cent), NTPC (down 0.82 per cent), and HDFC Bank (down 0.73 per cent) were the major Sensex losers.
ICICI Bank, L&T, Vedanta, Crompton Greaves, Nestle India and PVR will be among the companies announcing their June quarter earnings during the day.

F&O rollovers signal caution: F&O data showed market-wide rollovers from the July series stood at 74 per cent, compared with average rollovers of 81 per cent in the past three F&O series. Rollover of Nifty futures, on the other hand, stood at 63 per cent, which was lower than the average rollover of 75 per cent in last three F&O series.

” Marketwide futures open interest (value terms) and Nifty futures open interest (shares) were highest since the April, 2015 expiry. With the futures open interest base getting heavier, the Nifty50 has entered a cautious territory. Any negative news flow will only dent sentiment and the cascading effect can lead to a sharp decline in the market,” Edelweiss Securities said in a note.

Cues from Singapore muted: At 07:45 am, Nifty50 futures on the Singapore Stock Exchange were trading 15.50 points, or 0.18 per cent, lower at 8,681, indicating a weak opening for the domestic market.

“The risk-on sentiment in global markets has been triggered by hope of coordinated liquidity easing by the central banks coupled with a delay in Fed rate hike,” the Edelweiss report said.

Nifty50 forms bearish pattern on charts: Some experts said the Nifty50 could face selling pressure at higher levels.
“The Nifty50 has managed to give breakout of the mat & hold pattern, which is a bullish continuation pattern, indicating a high reliability of the bulls continuing the momentum in their favour. Since it is a continuation pattern, a close above the previous candle will confirm the next major targets in the coming sessions,” said Mustafa Nadeem, CEO, Epic Research.

Earnings to trigger stock-specific action: A handful of companies are going to announce their March quarter earnings during the day. ICICI Bank, L&T, Vedanta, Crompton Greaves, Nestle India, PVR, Karnataka Bank and IIFL will be among of the companies announcing June quarter numbers during the day.

As many as 328 BSE-listed companies are scheduled to report their numbers this week. Another 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 lower: Most Asian markets were trading lower this morning. Japan’s benchmark Nikkei was trading 61.25 points down at 16,415. China’s Shanghai Composite fell 0.04 per cent to 2,993. Other Asian indices, including Hong Kong’s Hang Seng (down 0.21 per cent), South Korea’s Kospi (up 0.32 per cent) and Taiwan’s TWSE (down 0.38 per cent), were trading mixed.

US markets ended mixed on Thursday: The Dow Jones industrial average index fell 15.82 points, or 0.09 per cent, to close at 18,456.35. The S&P500 index advanced 3.48 points, or 0.16 per cent, to 2,170.06. Nasdaq Composite index added 15.17 points, or 0.3 per cent, to close at 5,154.98.

A report by the US labour department showed that the number of people claiming unemployment benefits rose more than expected to 266,000 for the week ended July 22. Analysts had expected it to rise to 260,000, Reuters reported