Markets range-bound ahead of F&O expiry

Nifty holds 8,350; HDFC, BHEL, RIL and L&T are the leading gainers.

The benchmark indices are having a quiet session of trade on the last day of the June derivatives series.

The BSE Sensex has moved in a narrow range of around 150 points and at 11.35am, the Sensex was at 27,757, higher by 28 points or 0.1%, while the Nifty was a tad above the technically crucial level of 8,350 at 8,360, down 3 points.

The broader markets were however, underperforming their largecap peers. The BSE midcap had shed 0.3% at 10,621 and the smallcap index had lost 0.6% at 11,090.

HDFC, BHEL, RIL and L&T are the leading gainers on the BSE, while Cipla, Wipro, ITC and ONGC are trading in the red.

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(Updated at 10.33am)

The benchmark indices seem to be consolidating the gains witnessed in the past week on the last day of the June derivatives series. The markets are likely to remain volatile in this session as traders roll over their F&O positions from the June 2015 series to July 2015 series.

At 10.30am, the Sensex was at 27,797, higher by 68 points or 0.2% and the Nifty was at 8,369, up 9 points.

The broader markets are however, underperforming their largecap peers. The BSE midcap had shed 0.3% at 10,624 and the smallcap index had lost 0.7% at 11,077.

Technical analysts suggest that if the ongoing momentum in heavyweight constituents remains intact, then the Nifty may retest 8,450 – 8,500 levels.

“On the flipside, Tuesday's low of 8334 would now be seen as an immediate support level. Any sustainable move below this level may trigger some intraday correction towards 8,280 – 8,240 levels on the Nifty. The coming trading session is likely to trade with enhanced volatility on account of June series derivatives expiry on NSE,” says a note from Angel Broking.

As regards the Bank Nifty, analysts at Anand Rathi Research say that so long it manages to hold above 18,300 levels, then the up move may continue towards 18,500-18,600 levels, while on the downside immediate support is seen at 18,150 then 18,000 levels.

RUPEE

The rupee opened flat at 63.60 per dollar and was unchanged in early trade compared to previous day's closing value. In commodities, US crude was nearly flat in early Asian trade at $60.23/barrel after plunging more than 1% on Wednesday on a government report showing that an eighth straight weekly drop in US crude stockpiles was offset by a large build in refined products.

SECTORS AND STOCKS

Bajaj Auto, HDFC and BHEL have added about 1% each to top the gainer's charts on the BSE, while Wipro, M&M and Hindustan Unilever have shed around 1% each.

On the sectoral front, the pharma space is having a good session. Dishman Pharma has spurted by more than 2%, while Lupin. Sun Pharma and Dr Reddy's have added 0.5%-1% each.

On the other hand, the metal index has shed more than 2%, with Nalco, Hindustan Zinc, JSW Steel and Hindalco losing 0.5%-1% each.

In the IT space, Wipro and TCS have lost nearly 1% each. Infosys has however, gained on the news that it could soon become the most influential stock on the Nifty, Sensex and MSCI Index after SEBI said that existing promoters may be reclassified as public if a company becomes professionally managed and does not have any identifiable promoter.

In stock-specific action, BHEL is trading higher by 2% at Rs 260, extending its previous day’s 4% gain on the Bombay Stock Exchange (BSE). Currently, the stock is trading at its highest level since March 2015.

Cupid is locked at the upper circuit of 20% at Rs 97 on the BSE after the company said that it has received an order worth $16.28 million (approximately Rs 103 crore) to supply female condoms in Cupid brand to the National Department of Health (NDOH), South Africa.

The market breadth has turned marginally positive. Out of 1,592 stocks traded on the BSE, there are 799 advancing stocks as against 736 declines.