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Markets continue to trade in a narrow range with Nifty trading above the 8,550 mark with renewed buying interest in oil exploration majors ONGC and RIL coupled with gains in Vedanta amid reports that the company may start iron ore mining operations at the Codli mines in Goa on August 10.
On the other hand, weakness in banking shares coupled with losses in FMCG majors cap the upside.
At 10:35 am, the Sensex is flat at 28,304 and the Nifty remains unchanged at 8,590.
Caution is evident on the bourses ahead of the US jobs data due later today.
Caution is evident on the bourses ahead of the US jobs data due later today.
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(updated at 9:35 AM)
The benchmark indices have started the last trading day of the week marginally in the red, mirroring weakness in global peers.
At 9.35am, the Sensex was at 28,288, lower by 9 points and the Nifty was at 8,581, down 7 points. The broader markets are outperforming their largecap peers, with the midcap and smallcap indices gaining 0.3% each at 11,627 and 12,165 respectively. The market breath is strong, with 1,015 advancing stocks as against 563 declines.
The Sensex had ended up 75 points at 28,298 and the 50-share Nifty ended up 21 points at 8,589.
Caution is likely to prevail on the bourses ahead of the US jobs data due later today. However, stock specific action could be seen with some of the notable large caps including Tata Motors and M&M due to post their quarterly earnings today. Rainfall was 26% less than normal during the week that ended on Wednesday, mainly due to a 50% shortage in the southern states.
According to a market note by Nirmal Bang (Retail) Research,"After a positive rally from 4-5 trading sessions, we may see some profit booking at higher levels. Technically, the Nifty has a support at 8540/8500 levels. On the other hand, 8600/8640 is acting as resistance levels".
As per the daily technical report by Angel Broking, "The broader trend continues to remain bullish, although minor profit-booking in the near term could not be ruled out. The near term support for the Nifty is placed around 8,480 and any corrective action near the mentioned support should be used as a buying vopportunity. On the flip-side, 8,630-8,650 is seen as immediate resistance zone."
RUPEE
The rupee has opened flat at 63.76 per dollar on Friday against the day's previous close of 63.77.
GLOBAL MARKETS
Asian shares are trading lower following weakness in the Wall Street as caution reigned ahead of US employment data that may help determine whether the Federal Reserve could raise interest rates in near future. The Shanghai Composite is down 0.8% and Japan's Nikkei has shed 0.2% as investors awaited the outcome of the Bank of Japan's two-day policy meeting later this session, at which it is widely expected to maintain its stimulus program. However, Hang Seng is bucking the trend and is up 1%.
STOCKS ON THE RADAR
Pharma stocks are having a weak session post the profit-booking witnessed in the previous session. Dr Reddy's, which had gained by nearly 2% on Thursday in the wake of a strategic tie-up with Amgen, has shed about 0.5% and dragged with it other pharma stocks such as Lupin. The FMCG sector is also weak, with ITC and Hindustan Unilever losingh about 0.5% each.
On the other hand, the metal space is seeing buying interest, with Vedanta, Tata Steel and Hindalco ranking among the top gainers on the BSE. Index heavyweight RIL has also edged higher in early trades.
