Markets to Open Flat With Positive Bias

Markets to Open Flat With Positive Bias
The key domestic indices are likely to open on a flat to negative note as most of the Asian indices started off the session on a weak note amidst reports showing slower than expected increase in US consumer spending along with decline in sales of previously owned homes.

The MSCI Asia Pacific Index remained almost flat at 134.29 as of 10:52 a.m. in Tokyo, with about six stocks declining for every five that rose. Further, Australian Treasurer Wayne Swan stated that the country's first quarter GDP numbers might slow down amidst natural disasters in the country and in Japan which is its second largest trading partner. Shanghai Composite declined by 0.05% to 2,708.46 and Hang Seng Index gained 0.17% to 23,158.28.

On the other hand, Seoul Composite traded lower by 0.24% and Taiwan Weighted traded higher by 0.12%. In the domestic arena, the markets are likely to follow the route of global counterpart and is expected to trade volatile in a narrow range. Realty and Oil&Gas space will be in focus during today's trade.

Today, Nifty will face a resistance near 5,500 level and will have a support near the 5,430 mark.

Previous Session

On Friday, the domestic bourses witnessed a bullish session in tandem with the positive sentiment across the globe. The benchmark indices started the new derivatives series in an optimistic note by gaining on the previous session gains. After a decent gap up opening, the domestic market keeps on gaining momentum to march upwards on positive global cues and upbeat corporate results.

Buying was high in realty and banking stocks, while oil & gas and metal stocks were also trading positive due to rise in commodity prices. However, Auto and consumer durables stocks remains on the sellers' radar. The sentiment was supported by the strong quarterly earnings result posted by companies like Reliance Power, Spice jet and upbeat Q4 guidance by steel major, Tata Steel. The positive opening for the European markets had further boosted the sentiment. 

The BSE Sensex closed at 18,266.1 up by 221.46 points or by 1.23 % and NSE Nifty closed at 5,476.1, up by 63.75 points or by 1.18 %. The BSE MIDCAP closed at 6,730.36 up by 97.98 points or by 1.48 % while the BSE SMLCAP closed at 8,109.86, up by 71.68 points or by 0.89 %. The BSE Sensex touched intraday high of 18,298.64 and intraday low of 18,087.16.

On Friday, the U.S. markets closed higher with moderate gains amidst mixed economic data. The stocks were seen trading in a narrow range throughout the session with very low volumes as investors were reluctant to carry hefty positions before the long weekend.

The April consumer spending figures which increased by 0.40% and the incomes figure showing an increase of 0.40%, were inline with market expectations. The final Consumer Sentiment Survey for May from the University of Michigan came in at 74.3, which is better than street expectations.

However, pending home sales data for April plunged more than expected by 11.6%. Materials stocks were the major gainers during the session. Financials space also posted decent gains amidst strength in the banking stocks after a positive analyst comment on many European banks and a proposal in Basel III for more favorable requirements for banks. However, the health care and utilities space traded weak during the session. 

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 38.82 or 0.31% at 12,441.58 while NASDAQ index finished up by 13.94 points or 0.50% to 2,796.86. The S&P 500 (SPX) closed higher by 5.41 points or 0.41% to 1,331.10.

The FIIs on Friday stood as net buyer in equity, while net seller in debt. Gross equity purchased stood at Rs. 4506.10 crore and gross debt purchased stood at Rs. 1277.00 crore, while the gross equity sold stood at Rs. 3283.50 crore and gross debt sold stood at Rs. 2188.90 crore. Therefore, the net investment of equity and debt reported were Rs. 1222.60 crore and Rs. (911.80) crore, respectively.

Top traded volumes on NSE Nifty - Hindalco Inds 8947292, Reliance Comm 8168766, JP Assoc 7544364, Rel Power 7407821 and IDFC 7399466.

On BSE, total number of shares traded was 26.16 crore and total turnover stood at Rs. 3237.72 crore. On NSE, total number of shares traded was 54.22 crore and total turnover stood at Rs. 11793.71 crore.

In the NSE Futures and Options segment, total number of contracts traded in index futures were 367365 with a total turnover of Rs. 9298.64 crore. Along with this total number of contracts traded in stock futures were 496330 with a total turnover of Rs. 12192.47 crore. Total numbers of contracts for index options were 1944459 with a total turnover of Rs. 53232.96 crore and total number of contracts for stock options were 104795 with a total turnover of Rs. 2729.23 crore.

Read more about: bse, nse, nifty, sensex, fii, futures
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