Markets likely to open flat; Tata Motors, PNB in focus

Markets are likely to open flat amid weak cues from its Asian peers and overnight losses on Wall Street. Further, markets are likely to remain volatile in the latter half of the trading session as traders shift positions ahead of the expiry of March derivative contracts on Thursday.

At 8:35AM, the early indicator SGX Nifty was up 2 points at 8,579. Further, foreign institutional investors were net buyers in equities worth Rs 738 crore as per provisional stock exchange data.

"8,500-8,550 still remains the major support for Nifty. Bank Nifty has huge short positions and seeing high rollover, we may see further pressure. Nifty rollover is on the lower side at 37.80% and of Bank Nifty is on the higher side at 37%," says a morning note from Angel Broking.

Technical analysts say a bearish scenario may get confirmed only if the Nifty closes below the important level of 8,500. In this case, the possibility of it extending this corrective move towards 8,380 – 8,350 becomes quite high. However, if the said scenario doesn’t materialise and buying emerges at these levels, then the markets may consolidate further.  In such a scenario, the Nifty may move higher to retest 8,600 – 8,680 levels.

GLOBAL MARKETS

Major US stock indices ended lower for the second straight session on Tuesday as the impact of the strong dollar on corporate earnings weighed on sentiment while weakness in energy stocks capped upside gains. Further, new home sales surged to seven-year high in February.

The Dow Jones industrial average dipped 104 points to end at 18,011.14, the broader S&P 500 slipped 13 points at 2,091.50 while the tech-laden Nasdaq ended down 16 points at 4,994.73 weighed down by profit taking in biotech stocks after gains in the previous few sessions.

Markets in Asia were trading mixed tracking overnight slide on Wall Street even as the dollar firmed up after an increase in US consumer inflation. Japanese and Chinese shares witnessed profit taking with both the benchmark indices trading lower. The Nikkei was down 0.1% while Shanghai Composite was down 0.8%. However, shares in Hong Kong rebounded after yesterday's decline and the Hang Seng was up 0.5% while Straits Times was trading flat.

STOCKS IN FOCUS

Tata Motors will be in focus ahead of its board meet today for the proposed rights issue to raise up to Rs 7,500 crore and buyback of secured NCDs worth Rs 1,250 crore maturing on March 31, 2016.

Punjab National Bank may gain after the bank said it has raised Rs 1,800 crore through issue of debentures at a coupon rate of 8.35% on a private placement basis.

Glenmark Pharma will be in action on reports that the company has approached the Supreme Court against the order of the Delhi High Court which had banned sale of anti-diabetes drugs Zita and Zita-Met

GMR Infrastructure may gain on plans to hike stake in Delhi International Airport Pvt Ltd to 64% from 54%.

Telecom stocks could be in focus as the uncertainty over spectrum acquisition may finally be over with the spectrum auction nearly coming to an end.

Motilal Oswal Financial Services may see some action after HDFC Mutual Fund sold 18.10 lakh shares of the company through a bulk deal at Rs 289 per share.