Markets opened on a subdued note tracking weak Asian peers and investors turning to the sidelines ahead of state election polls today. The Nifty was up 3 points, at 5488 and Sensex gained 4 points, at 18,340.
Analysts expect markets to swing on either side taking cues from the assembly elections in Tami Nadu, Puducherry, Kerala, Assam and West Bengal. The results of the state elections are important for ruling UPA (United Progressive Alliance) government whose image has buffeted by a raft of scandals.
Technical analysts expect further downside for the markets as they have cracked below 5500 support. On the Technical charts Nifty has formed a rising wedge pattern which indicates a bearish trend. Edelweiss in the morning note said, “Rising wedge pattern has eventually resolved lower for a test of the starting point at 5440 and later towards 5350.” Additionally market volumes have been tepid indicating that the technical set up is in favor of the downside. Edelweiss expects Nifty to slide gradually to 5370-5350 supports.
According to the data available on Bombay Stock Exchange, Foreign Institutional Investors were net sellers of Rs 420 crore in cash, while Domestic Institutional Investors were net buyers of Rs 312 crore.
Other markets in Asia were weak following rate hike by People’s bank of China. Hang Seng and Shanghai Composite were trading marginally lower, down 0.5% and 0.1%. Resource shares continued to slide for the second consecutive as commodity prices weighed. Japan's Nikkei Stock Average was down 0.5% led by losses in technology shares.
Back in India among the new listing, Innoventive Industries, multi product engineering company dips 19 percent on listing to Rs 98.4; SKS Microfinance continues the winning streak for third consecutive day, up 5%.
BSE PSU shares lead the gains; the index is up 0.7%. Indian Oil Corporation gains 1.8%, Syndicate Bank zooms 1.5% and Coal India advances 1.4%.
Realty shares are under pressure, the BSE realty index is down marginally, Sunteck Realty dips 6%, Ackruti City falls 0.9% and DB Realty is off 0.3%.
From the broader markets midcap and smallcap indices are up 0.3% each.
Top gainers on the Sensex were ONGC, up 2.3% and Hindalco and Hero Honda rise over 1% each. Top losers were Hindustan Unilever, down 1%, Mahindra & Mahindra and Bharti Airtel fall around 0.7% each.
Market breadth is negative, 560 stocks advance for 331 declining stocks.
