Mkts likely to open flat ahead of Oct F&O expiry

Global cues muted

Indian stocks are likely to open flat and remain range bound ahead of the expiry of October futures and options contracts.

Major US share indices ended lower in overnight trades for the second straight session as the Fed's modest economic growth outlook and higher unemployment weighed on market sentiment.

The Dow Jones Industrial Average ended down 0.2 per cent at 13,077, S&P 500 ended down 0.3 per cent at 1,409 and Nasdaq Composite ended down 0.3 per cent at 2,982.

Stocks in Asia were trading firm but investors remained cautious amid disappointing corporate earnings. The Nikkei was trading  higher by 0.5 per cent and the Straits Times was up 0.1 per cent.

At 700 hrs IST the SGX Nifty was down 10.50 points at 5,679.

According to technical experts, the Nifty swung around its 20-day Daily Moving Average for yet another day in trades on Tuesday. The broader trend indicates range-bound movement within the 5,620-5,770 range. The momentum oscillators are not giving any conclusive indication for now. Today, the Nifty may seek support around 5,675-5,665, while face resistance around 5,705-5,715.

Among individual stocks, L&T may witness profit taking amid gains in the previous two sessions after the engineering major posted better-than-expected 42 per cent year-on-year growth in net profit at Rs 1,137 crore in the September quarter.

Corporates which reported strong earnings growth late Tuesday include Jaiprakash Power Ventures and Bank of Maharashtra.

Sterlite Industries counter would be in action after the metal major registered 75 per cent jump in net profit during September quarter on Foreign exchange (forex) gains and group firm Vedanta Aluminium Ltd’s lower losses helped.

Hero MotoCorp is likely to remain subdued after the two-wheeler major reported 27 per cent decline in net profit in the September quarter, as sales dropped on slowing demand and tough competition.

Among the major companies that are scheduled to announced their second quarter earnings later today include Mahindra & Mahindra, Kotak Mah ndra Bank and Asian Paints.