He who hesitates is not only lost, but miles from the next exit. – Anonymous
Living in resistance zone may be a tad comfortable than simply searching for support levels. The usual indicators are throwing up confusing signals which make any rise less convincing.
For the day the market is expected to open flat and perhaps move in a narrow range in the initial hours. Global cues later could determine the overall movement though individual heavyweights like HUL and ONGC could see some positive movement.
Hindustan Unilever is to consider a buy-back proposal. SBI is preparing a billion dollar war chest for Africa. Infosys is looking for smaller, back office and consulting
firm in Germany and France. ONGC and Oil India may see frenzied action ahead of a likely meeting of an empowered group of ministers headed by the Finance minister, to consider freeing petrol and diesel from government control. Should this happen, for the third time this calendar year fuel prices could go up and so would LPG.
Most Asian markets are lower. The fall is being led by mining companies following warnings of lower copper demand as China’s plans to curb its economy. The US markets saw some gains with the Dow adding a few points and the Nasdaq rising almost a percent. Investors were closely watching the weakening of the euro and the spiking of crude oil. Later in the day, the Eurozone GDP numbers are expected to be released.
On the domestic front, the RBI could well resort to a rate hike before its policy review on July 27 should the European crisis turn worse. With the sentiment changing faster than the weather, it is advisable to remain light and relax for the weekend.
Other stocks which could be in action include Hindalco which will declare its results today. KPIT Info board may announce a strategic initiative for an innovative solution in automotive technology. LG Balakrishnan and Torrent Pharma will announce dividends. Torrent Pharma had seen some bulk deals recently with some investors changing hands.
The euro fell lower versus the dollar shedding 0.6%. The dollar fell 0.1% against the yen
Meanwhile, the rupee strengthened on Thursday closing at 46.69/70 per dollar, a gain of 0.6% over its Wednesday’s close. Gold prices dropped fell in India with the Standard gold (99.5 purity) falling by Rs180 per ten grams to close at Rs18,545.
The Group of 20 nations is split on the scale and timing of increases in bank-capital requirements that have been under discussion since governments were forced to bail out lenders, an official from a G-20 government said.
In the US, reports on the labor market showed some improvement though they were below expectations. The Commerce Department report showed that factory orders increased 1.2% in April, again short of forecast.
The Institute for Supply Management's services sector index for May held steady at 55.4, again missing expectations.