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Markets may see consolidation, Q3 results to set tone: experts

Major earnings slated for this week include Bank of Baroda, United Sprits, Cipla, Tech Mahindra,

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Press Trust of India New Delhi
Last Updated : Feb 06 2013 | 7:28 AM IST

Stock markets are expected to see some consolidation this week amid traders expected to closely track the next batch of quarterly results, say analysts.

Investors will also take cues from management commentary that would accompany results and that this could result in stock-specific action, they added.

Major earnings slated for this week include Bank of Baroda, United Sprits, Cipla, Tech Mahindra, ACC, Ambuja Cement, Aurobindo Pharma, Cadila and Hindalco Industries.

The Sensex ended at a three-week low of 19,781 and the NSE Nifty closed below 6,000-mark on Friday, amid investors searching for positive triggers for an upmove.

"Besides Q3 results, focus shall be on cues from global markets which are likely to drive market trend. As 6,100 is an important resistance level for Nifty in near-term, the index may see consolidation in coming sessions," said Rakesh Goyal, Senior VP, Bonanza Portfolio.

After Oil India's share sale success, markets are likely to focus on power major NTPC's stake sale which is likely in the next 8-9 days, according to dealers.

This week, 5,940 level on Nifty shall be the crucial deciding level in near-term and the index is likely to witness further selling below this level, Goyal added.

Traders said Asian markets will on Monday also react to Friday's US non-farm payrolls data for January 2013, which grew modestly as employers added 157,000 jobs to payrolls.

"Post the RBI policy meeting, the focus is now expected to shift to other domestic and global cues, especially the US debt ceiling and spending cut issues," said Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities.

The RBI's draft guidelines on banking provisioning, tepid earnings by some major corporates had impacted market sentiments last week.

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First Published: Feb 03 2013 | 11:30 AM IST

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