Too many people miss the silver lining because they're expecting gold. - Maurice Sette.
India missed out some gold medals at the Commonwealth Games. But four Indian weightlifters brought home two silver and two bronze; not bad to begin with. The heavyweights in the indices too seem to be losing the golden touch. It looked like another splendid day for the bulls but the early morning rally fizzled out with the key indices closing nearly flat. The silver lining is that robust economic fundamentals and steady earnings growth make India a compelling case. Today’s opening is likely to be sedate at best owing to shaky global markets. The finish could be different if world markets improve.
US stocks closed lower as investors turned cautious after last month’s rally. Wall Street also chose to be on the sidelines ahead of the all-important jobs data and the start of the quarterly earnings season. Downgrades of Alcoa and Microsoft accentuated the fall. European stocks also fell while Asian indices are also mostly in red. Though the overall undercurrent remains strong, there might be some cooling after a sensational September. Any consolidation this month won’t be all that bad.
All eyes will be on the monthly US jobs data and other important economic reports. Central bank decisions are due today in Japan and Australia, while the same will be announced on Thursday in the UK and EU. The earnings season also kicks off this week - here in India and in the US.
The Nifty has strong support at around 6100-6080. On the way up, it will meet resistance at 6230-6250 before it heads north towards 6300-6350. Its all-time high stands at 6357. On daily candlestick chart, the Nifty has formed an shooting star pattern. This has to be dealt with caution as a close below 6130 is likely to confirm reversal in the short term.
Tech Mahindra could see some action amid reports that BT is planning to reduce its stake further. Patni Computer is in the news again for stake sale. SKS Microfinance may continue to be in the spotlight after its Board sacked its CEO.
Shares of Microsec Finance Ltd. will list today on the bourses.
Gitanjali Gems and other retailers of diamond jewellery could rise amid reports of strong sales. Akzo Nobel has sold its starch business to CPI's Indian subsidiary. ONGC might take a hit on reports that BP will sell stake in its Vietnam project to its affiliate first.
The FIIs were net buyers of Rs12.64bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were net sellers of Rs7.97bn. In the F&O segment, the foreign funds were net sellers at Rs1.09bn. The foreign funds were net buyers of Rs19.64bn in the cash segment on Friday, as per the SEBI web site. Mutual Funds were net sellers at Rs187mn on the same day.