NIFTY TO REMAIN RANGE BOUND WITH POSITIVE BIAS. RESISTANCE 6589; SUPPORT 6432

      Indian markets are expected to open expiry week and last week of the financial year with positive uptick as Asian markets are trading with decent gains though they pared some of their gains on after data showed Chinese manufacturing activity contracted for a third straight month in March. However, week ahead should see higher-than-expected volatility as derivative expiry on Thursday will see bulls and bears match forces. The Nifty continues to flirt with 6,500 and has been stuck around these levels for the last 2 weeks, with 6,470 on the downside and 6,580 on the upside and we expect markets to trade within this range at least for today. The week gone by also saw a flat Nifty, which ended the week down 0.16 per cent. The Reserve Bank of India policy meet on April 1 will be the next event to be watched by the markets, with no change in policy rates being the consensus on the Street. The week ahead will see Supreme Court hear the Reliance gas pricing petition and could be the trend decider as Reliance is the heavyweight bellwether which can see the Nifty head above the 6,580 levels. While Lok Sabha elections will be held from April 7 to May 12, stock market participants are seen betting on the next government getting a strong mandate. This has triggered chunky FII inflows and major indices have gained over 5 per cent in past one-month period.
However, FIIs data are largely positive recently, but their selling of Rs 800 and Rs 580 crs in index and stock fututes on Friday raises some concern. Hindalco may see negative action as Moody's placing the debt of Novelis, the Aditya Birla group's aluminium can maker, under review for downgrade to a probable default rating. In a release issued from New York on Friday, Moody's said the Hindalco subsidiary's weak financial performance had led to deterioration in its debt profile. LIC Housing, IDFC L&T finance may see positive actions as being frontrunners in bank license. Overall, The Nifty is in the 6420 to 6580 band and a breakout outside this range on a closing basis would dictate the future trend. Supports are placed at 6420, 6400 while 6580, 6650 continue to be hurdles on the upside. In Mar series for Nifty, Highest Call OI is at 6600 strike and highest Put OI is at 6400 strike.
          The benchmark BSE Sensex slipped from record high by falling over 50 points in early trade on Tuesday as RIL and ONGC plunged after the Election Commission asked the government to defer till the polls the doubling of natural gas prices. The 30-share Sensex fell by 50.34 points, or 0.23 per cent, to trade at 22,005.14. It soared to an all-time intra-day lifetime high of 22,074.34 in Monday's trade. The 50-share NSE Nifty, which climbed to hit record high of 6,591.50 in the previous session, fell 6.10 points, or 0.09 per cent, to 6,577.40. In the oil and gas segment, RIL fell by 2.83 per cent to Rs 879, while ONGC was trading 3.25 per cent down at 310.75 on fresh round of selling, dragging the BSE oil and gas sector index down by 2.49 per cent to 9,071.03 in early trade. Besides, emergence of profit-booking at record levels by participants and a weakening trend in the Asian region, following overnight losses in the US markets also dampened the trading sentiments, brokers said. Among other Asian markets, Hong Kong's Hang Seng fell by 0.33 per cent while Japan's Nikkei shed 0.51 per cent in early trade on Tuesday. The US Dow Jones Industrial Average ended 0.16 per cent lower in Monday's trade.

Rupee rises 23 paise on heavy capital inflows

Dealers said sustained selling of the American currency by banks and exporters also supported the rupee but a lower opening of the domestic equity market and dollar's rise against other currencies overseas, limited the gains.

Sensex, Nifty slip from lifetime highs

In the oil and gas segment, RIL fell by 2.83 per cent to Rs 879, while ONGC was trading 3.25 per cent down at 310.75 on fresh round of selling, dragging the BSE oil and gas sector index down by 2.49 per cent to 9,071.03 in early trade.

Rupee rises above six-mth high on FII inflows

Continued dollar selling by exporters also aided the rupee's upward journey for the second session in a row even as the dollar index was trading up 0.14 per cent against a basket of six major global currencies. Overseas funds pumped in over Rs 1,465 crore in Indian equities on Monday, helping benchmark indices hit fresh highs.

Sensex rises 300 points, closes above 22K leve

The BSE Sensex climbed to hit a new intra-day peak of 22,074.34 on the back fo heavy buying. It also ended at a record closing of 22,055.48, up 300.16 points, or 1.38 per cent. Its previous closing peak was 21,934.83 on March 10 while its intra-day peak was 22,040.72 set on March 18, 2014.

'Large blue-chip stocks a safe bet in volatile market'

With the Sensex hovering at 22,000-mark, investors should be guarded on their optimism and keep room for safety. Rather than trading, investors should invest and stick to large blue-chip stocks.

FIIs invest nearly Rs 9,600 cr in equities in March so far

Foreign investors have poured in a whopping Rs 9,600 crore in the stock market so far this month, mainly on the hopes of a stable government in general elections starting next month.

'Markets to be volatile as derivative contracts expire

Indian benchmark indices may witness bouts of volatility this week as traders roll over positions in the derivative segment on expiry of near-month contracts, say experts.

Weekly roundup: Sensex, Nifty off all-time highs

The BSE 30-share barometer resumed better and was trapped in a narrow breadth of over 335 points before settling at 21,775.32, a fall of 54.48 points, or 0.25 per cent.

Sensex edges up in thin trade during special session

Brokers said the market moved in a limited range as directionless investors and funds refrained from undertaking 

any major transactions due to weekend closure of global markets.

view more