Markets may open higher; F&O expiry weighs

Markets are likely to open higher on firm global cues.

Trading may, however, be volatile as investors will roll-over their positions to fresh July series on derivative contracts expiry today.

US share indices extended gains on Wednesday after a downward revision of first quarter GDP erased fears that the Fed would start reducing its stimulus measures.  The Dow Jones gained 1 per cent, S&P 500 rose 1 per cent while Nasdaq ended 0.9 per cent higher.

Asian shares rose tracking overnight gains on Wall Street. Nikkei was up 0.4 per cent, Straits Times gained 0.5 per cent and the Kospi was up 2.2 per cent.

At 8:15 hrs Indian Standard Time the SGX Nifty was up 71 points at 5,651.

According to technical experts,  the NSE Nifty may seek support around the recent lows of 5,565-odd levels. However, break of 5,550 can accelerate the down move and the index may soon tumble to 5,470 and 5,410-odd levels. Hence, one needs to be cautious at lower levels. Momentum still continues to remain in favour of the bears. Today, the Nifty may seek support around 5,570-5,550, while face resistance around 5,645-5,670.

ONGC, Oil India and Reliance Industries will be in action ahead as the Cabinet Committee on Economic Affairs would take up the issue of a rise in gas prices today.

Customers Bancorp, based in America, will invest $51 million (Rs 305 crore) for nearly 6 per cent stake in Religare Enterprises.

Yes Bank will see some action after seven-member board meets today to discuss whether to induct Shagun Kapur Gogia. Questions have already been raised on director appointments and claims have been made on violation of co-promoter’s rights.

Magma Fincorp -- Kolkata-based non banking financial company (NBFC) has decided to apply for the banking licence.