Markets make a muted opening on account of future and options expiry today and weak global cues. Technical analysts sound cautious for the day with upside capped around 6100-6120 on Nifty. S&P CNX Nifty has opened higher by 13 points at 6026 and the Sensex has risen 40 points at 20,051.
US bourses declined as investors dialed back expectations of a uncertainty over US election and monetary stimulus.Traders turned skittish in Asia head of Bank of Japan policy meeting, Nikkei average was trading flat. Banking shares posted better-than-expected results pulling Hong Kong higher, up 0.05%. China's Shanghai Composite was straddling to hold the 3000 level, the index fell 1.5% to 2,998.5. Seoul Composite was up 0.3% and Taiwan Weighted was trading flat.
HDFC Securtites in research note said, "markets may erode their gains, 5970 for Nifty and 19,890 for the Sensex are crucial supports to watch out for." It added for the last 2 days, Sensex has made a lower low and lower high on daily charts known as down day based on technicals giving a bearish signal. HDFC Securities has indicated Nifty resistance at 6075-6120.
Technical analyst Ravi Nathani expects Nifty to trade in a range of 6127 – 5965; close below and above would add trigger in the direction, Nathani added. Also Prakash Gaba said, " market is still weak, it may go up but stiff resistance is seen at 6100."
BSE power index has lost strength in the morning session, Lanco Infra is down 1.9%, Torrent Power and Siemens are down over 1%, ABB and NTPC have fallen 0.9%.
BSE Auto index is in the top gear, Auto ancillary Cummins India has surged 6%, Maruti Suzuki has gained for the second session, up 1.5%, Hero Honda has risen 1.3%.
Bharti Airtel is the top gainer on Sensex, up 2.1%, followed by Reliance Communication, up 1.3%, and Maruti Suzuki, up 1%; Hindalco, down 0.8%, ICICI Bank, down 0.4% and Larsen & Tourbo down 0.3% are the top losers.
Market breadth is positive, 1255 stocks have advances and 558 stocks declined.