The 50-share Nifty index is expected to open flat to higher on Friday tracking positive Asian markets while investors will closely watch Tata Consultancy Services which came out with its quarterly number last evening post market hours.
Tata Consultancy Services, India's largest software services exporter, said fiscal first-quarter net profit rose to Rs 2,380 crore ($535 million) in accordance with international financial reporting standards. Revenue rose 31 percent to Rs 10,800 crore based on international financial reporting standards, as it added 24 new clients in the quarter ended June.
Markets saw big swings on Thursday following inflation data and corporate results.
"There was a sharp sell off toward the end of the trading session and the Nifty failed to close above its resistance of 5620", says Kunal Saraogi, CEO, Equityrush. "Markets may continue face pressure on Friday as a large number of traders trapped with long positions at levels above 5620 will ensure that Nifty does not move beyond that level", adds Kunal.
Nifty might drift to 5550 levels on Friday. Traders need to trade very stock specific as the trend on the broader markets remains sideways.
The government data for the month of June on Inflation quickened driven by higher prices of manufactured goods and fuel, adding pressure on the Reserve Bank of India (RBI) to raise rates this month. The wholesale price index, India's main inflation gauge, rose an annual 9.44 percent in June.
The monsoon rains were 19 per cent below normal in the week to July 13, improving from a quarter below average rains in the previous week. The rains had been expected to slow in the first two weeks of July.
US stocks fell on Thursday as the market worried about a possible US debt default if Congress fails to act soon to raise the borrowing limit by 2nd August. Ratings agency Standard & Poor's further warned there is a one-in-two chance it could cut the United States' triple-A rating citing debt concerns.
Well everything is not that bad as it looks, Bernanke on second day of testimony hinted that the Federal Reserve would consider pumping in more money if the economy gets worse.
The Dow Jones industrial average slid 54.49 points, or 0.44 percent, to close at 12,437.12. The Standard & Poor's 500 Index shed 8.85 points, or 0.67 percent, to finish at 1,308.87. The Nasdaq Composite Index dropped 34.25 points, or 1.22 percent, to end at 2,762.67.
In early trade Hong Kong was trading marginally down, Tokyo was trading 0.2 pc higher, Seoul was trading 0.4 pc up and Shanghai gained 0.3 pc.
At 08:30 AM, Nifty India stock futures in Singapore were up 11 points at 5596, indicating a positive opening in the domestic market.
Equityrush recommends a 'SELL' on Hero Honda with a stop loss above 1910 and a target of 1780.
Stocks in News:
Siemens & GVK after Siemens said it may not sell stake in Bangalore Airport Authority Ltd (BAIL). The company is also looking to offload 14 pc stake to GVK.
Bharti offers to list another subsidiary, Hexacom. Bharti Looks to provide exit to JV partner TCIL. Watch out for how stocks of Bharti Airtel pans out.
GTL Infra and GTL Ltd after GTL group likely to opt for debt restructuring. The group is also looking at an Equity infusion of Rs 2,000 cr.
Apollo Hospital after the company launched QIP worth Rs 330 cr, sources say. Citi, Nomura, Enam were the bankers for QIP issues whose floor price was fixed at Rs 491.29/share. The company might also consider raising debt when rates scenario is more favourable.
Rallis India as the stock goes ex-split today from face value of Rs 10 to Rs 1.