Tense Thursday…bulls look to roll over peacefully

We must set up a strong present tense against all rumors of wrath, past and to come. - Ralph Waldo Emerson.

The Ayodhya verdict will be pronounced by the Lucknow bench of the Allahabad High Court post market hours. The sentiment on the bourses is unlikely to be affected by the ruling, though there might be some impact on the political front.



Coming to today’s outlook, the start yet again will be steady but things on the whole will be choppy owing to the F&O expiry. Global trends will continue to have a bearing on the sentiment as well. Stocks in the US and Europe closed slightly down while Asian markets are mixed.

The unfavourable market breadth remains a cause for concern. But, overall the undertone is upbeat as FIIs have poured in record money into Indian stocks. The key indices may consolidate further in the near term before they head towards historic peaks. Next month of course will be important as corporates come out with latest earnings reports – both here and abroad.

The NSE Nifty is likely to trade between 5950 and 6050 today. Resistance is likely at 6080-6100. Broad range for the Nifty is 5850 and 6150.

Mahindra Satyam will hog the limelight after declaring results for the last two years. Tech Mahindra could also be in focus as it is set to merge with Satyam at a later date. Tata Steel is another stock to watch out for as it has announced refinancing of loans taken for buying Corus. Sun Pharma may also attract attention amid a string of news on the company.

ITC and EIH could also be in the spotlight again amid various reports. Retail companies could also see some action as the Government has eased some norms for Cash & carry trading. But FDI in multi-brand retail may not get a green light. Sugar stocks are likely to gain as the Government is expected to cut the levy obligation on the mills from 20% to 10%.

The FIIs were net buyers of Rs7.56bn in the cash segment on Wednesday (provisionally), according to the NSE web site. Local funds were net sellers of Rs8.35bn. In the F&O segment, the foreign funds were net sellers at Rs16.7bn. On Tuesday, the FIIs were net buyers of Rs8.95bn in the cash segment, according to SEBI's web site. Mutual Funds were net sellers of Rs5.68bn in the cash segment on the same day.