FII flow continued to remain in the positive terrain - ZENMoney

Domestic Indices opened the day on a negative note following sluggish global cues. Investors' remained cautious with Confederation of Indian Industry (CII) survey showing that industrial growth in the three months ended 30 September remained dismal despite the government introducing a number of reform measures to boost the economy. Also, Rupee opening weak against dollar and concerns over subdued earnings for September quarter kept the bourses under check. However, markets recovered their losses in the afternoon session on account of buying interest witnessed in frontline stocks especially in Metals and IT sectors. Indices ended the day on a flat note.

On a sectoral front, IT and Metal sectors came as top gainers of the day followed by Health care and Power. Banking sector remained as top loser of the day amid concerns over the deteriorating asset quality of Indian banks. CG, Realty, CD, Oil & Gas and Auto sectors were among others that ended the day with losses.

The Indian markets are likely to open on a positive note on the back of RBI's move to reduce MSF rate. The continuing deadlock in the US over extending the debt limit to avoid a default could weigh on global market sentiment.

On the domestic front, the RBI's move to reduce the marginal standing facility (MSF) rate from 9.5% to 9% is expected to boost liquidity in the market and improve market sentiment.

The earning season which starts from Friday will be the key trigger for the market movement in the near term. IT stocks are likely to be limelight ahead of Infosys results which will be announced on Friday.

Crude prices are likely to be range bound and take cues from the ongoing happenings in the US.

FII flow continued to remain in the positive terrain in yesterday's market. As per provisional figures they net bought equities to the tune of Rs 494.13 crore on Monday. Further buying from the FIIs can take the market to higher levels.

For the Nifty 5937, 5968, 6054 are the immediate resistance levels, while 5850, 5795, 5709 are its immediate support levels.

For the Sensex 19996, 20095, 20369 are the immediate resistance levels, while 19721, 19547, 19274 are its immediate support levels.

Source : Equity Bulls

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