Markets open flat on back of subdued cues from Asia. The Sensex has risen 24 points to 20,022 and the Nifty has risen 1 point to 6012.
While Indian markets ended the day with modest gains yesterday, technical charts indicate that Nifty is facing a stiff resistance at 50% retracement area. Emkay in the morning research note has said, "key cue to watch out for is the breakout from the range of 6030-5986. Either side breakout will lead to a good move in that particular direction. Moreover, Nifty is also finding resistance and is facing selling pressure on every approach to pass its 20-Day Simple Moving Average and the 50% retracement area of the previous fall."
BSE midcap index and smallcap index have slipped over 0.6% in the opening trades. The stocks have witnessed selling pressure, Murli Industries (14.6%), Ackruti City (down 13%), Welspun Corporation (down 19.1%) and Brushman India (down 5%) hit lower circuit after after Sebi barred these firms for rigging stocks.
Asian markets have been trading flat in the morning session shrugging of solid closing on Wall Street. In the US shares rallied for the second straight session bolstered by European Central Banks decision to keep the interest rates low and expand the liquidity safety net to help the troubled banks from the Euro Zone area. Upbeat data from retail and home sales also lend support. In Asia Hong Kong's Heng Seng rises marginally in early trade, China's Shanghai Composite turns negative. Japan's Nikkei has gained 0,1% in the morning session led by exporters. Straits Times has edged up 0.4%, Seoul Composite has risen 0.2% and Taiwan Weighted has added 0.8%.
Back in India, Realty stocks have been leading the losses in early trade led by Ackruti City, Orbit Coporation (down 4.5%) and Parsvanath Developers (down 3.5%). Other sector seeing some selling pressure is Consumer Durables space, Videocon Industries has lost 9.3%, Blue Start has dipped 3.5%, Rajesh Exports, off 1.6%.
Other stocks such as Shipping Corporation of has fallen 0.4% after the FPO was subscribed by 2.32 times yesterday, ONGC has gained 1.1% after government raised natural gas price by 10%.
ITC was the top loser on the Sensex, down 2% on reports that production has been stopped in cigarette manufacturing units, DLF (down 1.6%) and Sterlite (down 1.2%) were the other losers.
Gainers on the Sensex are Hero Honda (up 1.8%), Bharti Airtel (up 1.4%) and ONGC (up 1.2%).
