Markets to open lower on weak global cues; SBI, DLF in focus

Markets are likely to open lower on Monday tracking sharp losses in US stocks on Friday and subdued trend in its Asian peers.

At 8:30AM, the early indicator SGX Nifty was down 20 points at 8,672.

Technical anlaysts say that given the ongoing momentum and the chart structure, there is a possibility of the Nifty extending this downward move towards 8,550 – 8,500 levels.

"These levels are just 1.5% away from the current levels on the Nifty and hence, due to unfavorable risk to reward ratio, it would be difficult to short this market at current levels. 8,800 – 8,850 is now seen as an immediate resistance zone for the market. Hence, with a slightly broader perspective, we expect the Nifty to continue its consolidation phase, where we could see a trading range of 8850 – 8800 to 8550 – 8500. It’s advisable to trade with a proper exit strategy," said technical analysts at Angel Broking in a morning note.

Meanwhile, foreign institutional investors were net buyers in equities to the tune of Rs 67 crore.

GLOBAL MARKETS

Asian shares were trading lower tracking losses on Wall Street on Friday while investors also remained cautious ahead of the two-day US Federal Reserve meet which begins on Tuesday. Further, the Bank of Japan is likely to announce its policy decision on Tuesday and is expected to maintain its monetary stimulus measures to stimulate growth. Except for China all other markets were trading with marginal gains. Japanese shares were up 0.2% while Shanghai Composite was up nearly 1% while Straits Times and Hang seng were up 0.2-0.4% each.

Major US share indices ended lower on Friday on concerns of the impact of a strengthening dollar on corporate earnings while decline in crude oil prices led to profit taking in energy shares. Meanwhile the Dow Jones and S&P 500 recorded their third straight weekly loss. Further, investors will keenly watch the US Fed meeting this week for its direction for the probability of an interest rate hike. The Dow Jones ended down 146 points at 17,749.31, the broader S&P 500 ended down 13 points at 2,053.40 and the tech laden Nasdaq closed 22 points down at 4,871.76.

Stocks to watch

State Bank of India will be in focus after the bank's Executive Committee of Central Board (EGOS) approved issue of 10,04,77,012 equity shares at Rs. 295.59 per share on preferential basis to GoI, for a consideration of Rs. 2970 crore.

JSW Steel will see some pressure after crude steel production fell 2% to 9.47 lakh tonnes in February 2015 compared to the same month last year.

Adani Enterprises will also see some action after SBI has turned down a $1 billion loan for its coal project in Australia.

State Bank of Travancore will be in focus ahead of its Rs 474 crore rights issue priced at Rs 400 per share ( which includes premium of Rs 390/- per share) and opens on March 17.

McNally Bharat will be in action after the company said it has allotted 30,00,000 warrants to its promoter Williamson Magor & Co Ltd.

Blue Star will be in focus after the company said it plans to transfer its Professional Electronics and Industrial Systems business undertaking to its wholly owned subsidiary, Blue Star Engineering & Electronics on a ongoing concerns basis, at a fair value, for a consideration of Rs 110.50 crore

DLF may gain on reports that it has reduced the coupon rate on convertible preferential shares to .01% from 9%.

Fortis Healthcare may weaken after the Singapore's regulator (Competition Commission of Singapore) has indicated that it the proposed transaction is completed as contemplated, the combination may result in lessening of competition in the relevant market in Singapore with regaings to he acquisition of RadLink- Asia Pte Limited and its subsidiaries by Medi-Rad Associates Ltd, an indirect wholly owned subsidiary of IHH Healthcare Berhad.