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The benchmark indices have recovered from the lows of the day, thanks to strength on the oil and banking counters.
At 9.35am, the Sensex was at 27,638, higher by 132 points and the Nifty was at 8,359, up 40 points ahead of the GDP (gross doemstic product) data for the first quarter of the current financial year due later in the day today.
The broader markets are also going strong; the midcap and smallcap indices have added about 0.5% each at 10633 and 11205 respectively.
The markets had a sluggish closing on the last day of May derivatives series, with the Sensex shedding 58 points and Nifty losing 16 points.
NSE has added 14 new stocks to the F&O list, including Dewan Housing, Kaveri Seeds, Ajanta Pharma, Britannia, South Indian Bank, Oil India, BEL, Amara Raja Battery, Castrol, CEAT, Bajaj Finance, Pidilite, Page Industry and SRF. These stocks will be available for trading from May 29.
The June series is expected to be volatile. The government is scheduled to announce the gross domestic product (GDP) data for Q4 March 2015 during the day. And the upcoming Reserve Bank of India (RBI) monetary policy review meet due on Tuesday is also likely to add to the volatile movements on Dalal Street.
RUPEE
The rupee was flat in early trade on Friday. It opened at 63.81 a dollar against the previous day's closing value of 63.80 a dollar.
TREND WATCH
Nifty index rolled around 1.3 crore shares (~68.1%) into next two contracts; lowest over past 23 months. Nifty rolls were below six-month average of 74% and 2.25 crore shares. Tumultuous undertone could possibly have led to lower rolls. Bank Nifty rolls were lower at 64% versus an average of 68% over past six months. Marketwide rolls were around 83% on back of weak rolls in frontline stocks.
Analysts at Anand Rathi suggest that the Nifty now it has to cross and hold above 8,350 levels to witness an up move towards 8380 then 8,420 levels. On the downside, if it fails to sustain 8,300 zone then may witness profit booking towards 8,280 and 8,250 levels.
“Traders are required to maintain cautious approach as the index has been making lower lows price formation from last couple of trading sessions and now it needs to negate the trend to witness follow up buying action ahead of fourth quarterly results and GDP data expected later on Friday,” they said in a morning note.
CORPORATE RESULTS
On the earnings front, Cipla, Berger Paints, Blue Star, IOC, IRB Infra, M&M, NTPC, SAIL, RCom and Oil India are likely to announce their Q4 numbers during the day.
GLOBAL MARKETS
Chinese share markets extended a bruising selloff on Friday after the previous day's plunge, while the dollar took a breather from a sharp run up this week. The slide in China forced Asian markets off earlier gains, with the MSCI's broadest index of Asia-Pacific shares outside Japan flat. It shed more than 1% on Thursday. The key indices in Japan, Hong Kong, Taiwan, and South Korea were up 0.04% to 0.42%. Key indices in China, Singapore and Indonesia were off 0.13% to 0.58%.
US stocks had edged lower on Thursday as a lack of resolution on Greece debt talks kept investor uncertainty high. The Dow Jones declined by 36 points to 18,126, the S&P 500 lost 2 points to 2,120 and Nasdaq Composite dropped 8 points to 5,097.
SECTORS AND STOCKS
Oil and banking stocks have firmed up this morning. In the oil space, HPCL, BPCL and IOC have added 2-4% each, while RIL has inched up by 0.3%. ONGC, however, is trading weak post its Q4 numbers.
In the banking space, SBI, ICICI Bank, Axis Bank and HDFC Bank have gained almost 1% each. Bank of Indisa, Yes Bank and Canara Bank are the other major gainers.
On the other hand, ONGC has weakened by 2.2% at Rs 320 after reporting a 19.5% drop in net profit to Rs 3,935 crore for the quarter ended March 31, 2015, mainly due to higher operating cost and write-off on dry wells drilled. Metal stocks are also weak this morning, with Vedanta and Hindalco losing 0.5%-1% each.
The market breadth is strong. Out of 1,580 stocks traded on the BSE, there are 991 advancing stocks as against 531 declines.
