Markets struggled to find direction in opening trade on account of derivatives expiry. After swinging between marginal gains and losses, the Nifty was up 11 points, at 5,698 and the Sensex surged 28 points, at 18,998.
Markets may not be able to hold on to the gains as technicals indicate a bearish near term trend. Puneet Kinra, Senior Technical Analyst (Equity Research) from Bonanza Portfolio said,"Nifty showed selling pressure from 5800 levels and made bearish engulfing candlestick pattern, which shows bears are again having control at the moment. As long as Nifty trades above 5600 levels, volatility in 5600-5850 levels may be seen. On maintaining below 5600 or above 5750 levels, decisive price action may also be seen." Kinra said 5680 was the trend deciding level for Nifty.
Asian markets pared losses and were trading modestly higher in the morning trade. Chinese government unvieled some new measures to control prices. China's Shanghai Composite rebounded, up 1% at 2,815 led by gains in auto and resource shares. Hong Kong's Heng Seng was trading flat at 23,899 as Chinese developers tumbled, however telecom and resource shares lend support. Japan's Nikkei 225 advanced 0.3% buoyed by strong earnings expectations and a firm Yen against the Euro.
Taiwan Weighted was up 0.6%, Straits Times, Singapore's benchmark index dropped 0.1% and Seoul Composite was up 0.2%.
Back in India IT shares were leading the losses, Wipro slipped 2.5%, Infosys was off 1.2% and HCL Technologies dipped 1%.
BSE Bankex was leading the sectoral pack, Axis Bank was up 1.5%, followed by Bank of India, up 0.6%.
GMR Infrastructure developer of power plant, airports, roads was trading flat at Rs 40.5 and the stock did not move much on reports that it is expected to close its second coal mine acquisition in Indonesia. The mine is expected to cost close to $150 million and has reserves of close to 200 million tonne.
Sesa Goa was up 0.6% after and reports that it was securing a stay order againt Bellary sell-off. Ultratech Cement fell 0.4% after third quarter net dipped 26% and Grasim Industries dipped 0.3% after consolidated Q3 net fell 14%.
HDFC Bank was trading flat at Rs 2088, and was unperturbed ahead of December quarter results. Tata Motors, Jaiprakash Associates and Tata Steel were top gainers on the Sensex, up between 0.6-0.8%. On the other hand Sterlite Industries, Mahindra and Mahindra and Bharti Airtel were the top losers, down over 2% each.
From the broader market space, midcap and smallcap indices were trading flat each.