Soft start, results in focus

The Nifty needs to stay above 6300 for a few sessions to build up momentum for taking out all time highs. Today we expect the Nifty to trade in range of 6245-6340.

Nobody in life gets exactly what they thought they were going to get…- Conan O'Brien.



At the start of the week it seemed as if the new highs could be attained easily. Now, after two days of lackluster trading, the wait may just get longer. We expect a soft start today. Global cues are mixed with US indices falling while counterparts across the Atlantic advanced. Asian benchmarks are indecisive for now.

Results from Bharti Airtel, BPCL, DLF, Britannia and PFC will be watched today. Meanwhile, the PowerGrid FPO was fully subscribed on Day One thanks largely to a strong response from QIBs.

The Nifty needs to stay above 6300 for a few sessions to build up momentum for taking out all time highs. Today we expect the Nifty to trade in range of 6245-6340.

Globally, equities are taking a breather after the recent run-up while commodities led by gold are hardening. People are still analyzing the medium term fallout of the latest Fed easing.

Investors are also anxious ahead of the G-20 summit later this week. Overall expectations are low amid persistent bickering over the trade and economic imbalances.

Corporate results are still pouring in. Tata Motors is likely to rise after reporting robust Q2 results. Hindalco could also gain after its Q2 earnings report.

Meanwhile, the dollar has recovered at the cost of the euro. The common European currency has come under some pressure lately amid renewed sovereign debt worries.

The principle downward trend of the dollar has not changed though. That means risky assets and emerging markets will continue to attract a good chunk of the global flows in the days and weeks to come. India is no exception. And, with a spate of big-ticket public issues lined up, the dollar deluge will persist.

Results Today: Advanta India, Astec Lifesciences, Bharti Airtel, BPCL, Britannia Inds, Crest Animation, DLF, Edserve Soft, Eros International, Great Offshore, Greenply Inds, Gujarat Industries Power Co., Hanung Toys, Kesoram Inds, Maytas Infra, NCC, Nitesh Estates, Noida Toll, Omaxe, Orient Green Power, PFC, Provogue, Ruchi Soya, Sonata Software, STC and Sunteck Realty.

FIIs were net buyers of Rs 4.74bn in the cash segment on Tuesday (provisionally), according to the NSE web site. Local funds were net sellers of Rs 5.28bn. In the F&O segment, the foreign funds were net sellers at Rs 4.8bn. The foreign funds were net buyers of Rs 7.48bn in the cash segment on Monday, as per the SEBI web site.