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Markets could continue to remain choppy with a negative bias today tracking global cues. At 720am (IST) Friday, the SGX Nifty was trading 42 points, or 0.5%, lower at 8,103 levels.
The benchmark indices continued to fall for the fourth consecutive session on Thursday amid volatility qith the benchmark indices ending marginally flat. While the S&P BSE Sensex ended 23.78 points lower at 26,813 levels, the CNX Nifty closed 4 points lower at 8,131 levels.
The broader markets ended mixed – S&P BSE Mid-cap index inched up by 0.2% and the BSE Small-cap index ended flat.
“Nifty bounced back from the psychological level of 8000, as investors weighed in the impact of weaker rainfall and Thursday’s positive close is indicative that investors are looking for bargain buying, deeming the recent steep falls as overdone,” said Anand James, co-head of technical research at Geojit BNP Paribas.
“However, there is hardly any catalyst for domestic market at the moment and the focus should shift outside in the week ahead. With the first of the several Greece debt payment deadlines lined up for this month, buyers are unlikely to chase prices much higher,” he adds.
Jayant Manglik, President-retail distribution, Religare Securities, however, feels that the recent decline in index was steep and that has led to oversold positions as well so we may see some consolidation or technical rebound in the coming session prior to further fall.
“Having said that, our negative view is intact on index and any rebound or pause can be utilized as fresh shorting opportunity. We reiterate our immediate target of 8,000 for Nifty index while 8,250 – 8,300 zone would act as hurdle in case of any rebound,” he adds.
GLOBAL MARKETS
Asian shares got off to a tentative start on Friday while bonds snapped a vicious losing streak and the euro retreated as investors braced for US jobs data and another session of uncertainty over Greece.
MSCI's broadest index of Asia-Pacific shares outside Japan was little changed after hitting a nine-week trough. Japan's Nikkei 225 dipped 0.34% while shares in South Korea lost 0.3%.
Greece delayed a key debt payment to the International Monetary Fund due on Friday as Prime Minister Alexis Tsipras, facing fury among his leftist supporters, demanded changes to tough terms from international creditors for aid to stave off default.
The IMF said Athens planned to bundle four payments due in June into a single 1.6 billion euro lump sum which is now due on June 30.
It was the first time in five years of crisis that Greece has postponed a repayment on its 240 billion euro bailouts from euro zone governments and the IMF, even though Tsipras said earlier this week that Athens had the money and would make the payment.
Overnight, US stocks closed lower as recent volatility in bonds and lack of resolution on Greece kept investors on edge ahead of Friday's employment report. Dow Jones industrial average fell nearly 200 points before closing down about 170 points, or 0.94%, at 17,905 levels. The Nasdaq ended about 40 points lower at 5,059 levels.
With Reuters inputs
