The markets are expected to open on a quiet note led by subdued global cues. The Nifty futures on the Singapore Exchange were down three points, at 5,663.
The Asian markets were trading marginally lower as US markets remained closed for Independence day. Japan's Nikkei Stock Average slipped 0.2%, China's Shanghai Composite was off 0.3% and Hong Kong's Hang Seng was trading flat at 22,761 as profit booking in energy and banking shares capped gains.
Back in India, on the technical charts Nifty has strong support around 5,600 levels and resistance at 5,700 levels. Ashish Chaturmohta from IIFL Wealth said, “If Nifty sustains above 5,700 levels on closing basis, it can scale to 5,760-200 Days Simple Moving Average.”
Going forward markets may also take cues from the cabinet re-shuffle. A reformist and a more pro-active cabinet can restore confidence among investors. There are reports that oil minister Murli Deora may resign ahead of the cabinet reshuffle.
Analysts expect some amount of profit booking in the coming days as there are expectations that the first quarter results may be weaker than the fourth quarter and margin erosion may be seen across the board. The Foreign Institutional Investors have invested Rs 7,761 crore in a span of six sessions which has led to the upmove from 5,250 to 5,600 levels. Arun Kejriwal, founder, Kejriwal Research and Investment said, “This up move is not sustainable and we expect markets to give up most of the gains in the next 10-15 days. I recommend investors to buy when the markets correct.”
Going forward markets may also take cues from the cabinet re-shuffle. A reformist and a more pro-active cabinet can restore confidence among investors.
Foreign Direct investment doubled to $4.66 billion in May against $2.21 billion last year. Analysts expect this number to grow as BP Plc and Reliance Industries and Vedanta and Cairn India deal goes through.
