Markets remain range-bound; Midcaps outperform

Benchmark indices are trading in a narrow range with positive bias led by index heavyweights Infosys and RIL.

By 10:20, the 30-share Sensex was up 27 points at 20,661 and the 50-share Nifty was up 7 points at 6,134.

Adds Ravi Nathani, Technical analyst of nsetoday.com, “Resistance on charts is expected around 6170 whereas support is around 6090. Best trading strategy for traders would be buy on dips as index has given a positive breakout on charts for near term which results a target of 6170 & 6210.”

The currency, debt and money markets will be closed on Wednesday for Shivaji Jayanti. Stock markets, however, will be open for regular trading hours.

Meanwhile, foreign institutional investors (FIIs) bought shares worth a net Rs 292.23 crore on Tuesday, as per provisional data from the stock exchanges.

On the global front, Asian share markets were in hesitant mood on Wednesday as investors keep a wary eye on interest rates in China, though the euro left the dollar in its dust after more soft US economic data.

The action was light, with MSCI's broadest index of Asia-Pacific shares outside Japan barely changed and Australia up a slim 0.3%. Shanghai stocks were flat while Seoul lost 0.6%.

Japan's Nikkei pared its early losses to be off 0.6%, battling to maintain the momentum of Tuesday's 3% rally which followed a decision by the Bank of Japan to expand a scheme to encourage more bank lending.

Back home, foreign institutional investors (FIIs) bought shares worth a net Rs 292.23 crore on Tuesday, as per provisional data from the stock exchanges.

On the sectoral front, BSE IT and Healthcare indices have gained by nearly 1%. However, BSE Metal index has slumped by nearly 1%.

The main gainers on the Sensex at this hour include BHEL, Sun Pharma, Infosys, Dr Reddy’s Labs, M&M, Coal India, Wipro and TCS.

On the losing side, Tata Steel, Sesa Sterlite, Tata Power, HDFC and Tata Motors have declined between 1-2%.

Hero MotoCorp has fallen by 0.38% to Rs 1970 as the company cut two-wheeler prices after the excise duty reduction announced in the Interim Budget 2014-15.

Among other shares, Paper Products has rallied 7% to Rs 82.45 after reporting a strong 66% year-on-year (yoy) jump in consolidated net profit at Rs 16.66 crore for the fourth quarter ended December 31, 2013 (Q4), mainly on account of Rs 7.05 crore gain on sale of office property in Mumbai.

Force Motors has soared 11% to Rs 391, extending its past two day’s rally on BSE, after promoter’s increased their stake in the company to 56.54% from 51.75% earlier.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up by nearly 1%.

The market breadth in BSE remains positive with 1,079 shares advancing and 528 shares declining.