Nifty opens above 8,550; Tata Motors, Sun Pharma up 2%

Markets have started the session on a marginally positive note tracking global cues. Further, traders have turned cautious ahead of expiry of March derivative contracts tomorrow.

By 9:25, the 30-share Sensex was higher by 45 points at 28,207 and the 50-share Nifty gained 20 points at 8,563.

"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.

Besides, the next major trigger for the Indian markets is Q4 results of India Inc. which will start during second week of April, 2015.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 737.86 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 631.67 crore yesterday, as per provisional data.

GLOBAL MARKETS

Wall Street drifted down while European shares neared record highs in choppy global equities trading on Tuesday as the dollar rebounded and oil prices fell.

The dollar's gains knocked the euro back below $1.10, even as yields on US Treasuries eased on betting in credit markets that low inflation will persist and delay interest rate hikes by the Federal Reserve.

The Dow Jones industrial average closed down 104.96 points, or 0.58%, at 18,011.08, the S&P 500 lost 12.92 points, or 0.61%, to 2,091.50 and the Nasdaq Composite dropped 16.25 points, or 0.32%, to 4,994.73.

Asian stocks were steady on Wednesday, caught between conflicting signals from lower Wall Street and higher euro zone shares, while the dollar held to modest gains after a rise in US consumer inflation.

MSCI's broadest index of Asia-Pacific shares outside Japan stood little changed after a small bounce the previous day. South Korean and Australian shares were effectively flat while Japan's Nikkei inched up 0.2%.

SECTORS & STOCKS

Sectors like Consumer Durables, Healthcare, IT, Power and Realty have gained between 0.2-0.6%. However, BSE Metal, Capital Goods and Oil & Gas indices are down 0.1-0.3%.

Sun Pharma is the top Sensex gainer, up over 2%. The company has received Reserve Bank of India approval for transfer of the foreign investments of Ranbaxy to it and issuing its shares to non-resident shareholders of the latter as part of their $4-billion merger deal.

Tata Motors has also gained 2% 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.

Other notable gainers are Hindalco, TCS, NTPC, Infosys and ICICI Bank.

On the losing side, GAIL, Bharti Airtel, Bajaj Auto, RIL and Coal India have declined between 0.3-1.4%.

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

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3%.

Market breadth in BSE is positive with 704 advances against 494 declines.

With Reuters input