The Bombay Stock Exchange's Sensex closed a tepid session on a flat note due to lack of positive cues from global peers and as investors chose to stay away from frontline stocks after a rally in last session and ahead of Infosys Technologies' quarterly results. Investors will also keep an eye on the Index of Industrial Production data for direction as well.
The Sensex ended at 16175.86, up 10.77 points or 0.07 per cent. The 30-share index touched intraday high 16244.70 and low of 16127.77 intraday.
The National Stock Exchange's Nifty ended at 4860.95, up 11.40 points or 0.24 per cent. It touched a high of 4877.20 and low of 4841.60 in trade today.
According to analysts, the near term trend looks bullish and traders should initiate long positions in case the benchmarks corrects on the downside.
"After going through a very strong rally my sense is that we might actually go in for a couple of days of consolidation. As long as 4800-4780 is being held on I would be comfortable looking for long opportunities as I am still not looking for aggressive shorts. Some minor shorts here and there is fine but my sense is that on those pullbacks to 4800-4780 it will be excellent time to get into long positions or initiate fresh longs again. I would probably look for targets of about 4930-4950 on the higher side possibly even higher," said Mitesh Thacker, Technical Analyst, miteshthacker.com.
IT bellwether Infosys Technologies will announce its third quarter results and set the tone for earnings season. Analysts are not are not expecting any positive surprise going into this quarter from the company.
"This quarter supposedly is a seasonally weak quarter because of holidays and industry shutdown, but Infosys had two extra days of working. We are expecting 4.5 per cent of volume growth. Due to the cross-currency movement, the US dollar volume growth would be get impacted by 90 basis points. We are expecting 3.6 per cent US dollar term revenue growth on a quarter to quarter basis. We are expecting a margin expansion because of the currency depreciation against US dollar of 250 basis points. So at the bottom line it would translate into almost 18.2% quarter on quarter growth for Infosys.
Stocks from rate sensitive sectors have been witnessing an uptrend on hopes of rate cut by the Reserve Bank of India at its policy meet. However, the analysts are of the view that inflation might have peaked but the central bank will take some time to follow suit.
Meanwhile, the RBI has ruled out the possibility of a cut in the cash reserve ratio, or CRR, in its monetary policy review on January 24, according to bankers who took part in the customary pre-policy meeting held by the central bank on Tuesday.
BSE Midcap Index was up 1 per cent and BSE Smallcap Index moved 1.32 per cent higher.
Amongst the sectoral indices, BSE Realty Index was up 4.64 per cent, BSE Metal Index moved 2.26 per cent higher and BSE Bankex gained 1.12 per cent. BSE IT Index was down 1.42 per cent and BSE FMCG Index declined 0.68 per cent.
Hindalco Industries (4.96%), DLF (4.58%), Sterlite Industries (4.28%), Tata Steel (2.21%) and Hero MotoCorp (1.68%) were the major Sensex gainers.
Mahindra & Mahindra (-1.98%), Tata Consultancy Services (-1.74%), Bharti Airtel (-1.62%), Jindal Steel (-1.54%) and Cipla (-1.36%) were the major losers.
Market breadth was positive on the BSE with 1868 gainers against 951 losers.
News bureau,
The Sensex ended at 16175.86, up 10.77 points or 0.07 per cent. The 30-share index touched intraday high 16244.70 and low of 16127.77 intraday.
The National Stock Exchange's Nifty ended at 4860.95, up 11.40 points or 0.24 per cent. It touched a high of 4877.20 and low of 4841.60 in trade today.
According to analysts, the near term trend looks bullish and traders should initiate long positions in case the benchmarks corrects on the downside.
"After going through a very strong rally my sense is that we might actually go in for a couple of days of consolidation. As long as 4800-4780 is being held on I would be comfortable looking for long opportunities as I am still not looking for aggressive shorts. Some minor shorts here and there is fine but my sense is that on those pullbacks to 4800-4780 it will be excellent time to get into long positions or initiate fresh longs again. I would probably look for targets of about 4930-4950 on the higher side possibly even higher," said Mitesh Thacker, Technical Analyst, miteshthacker.com.
IT bellwether Infosys Technologies will announce its third quarter results and set the tone for earnings season. Analysts are not are not expecting any positive surprise going into this quarter from the company.
"This quarter supposedly is a seasonally weak quarter because of holidays and industry shutdown, but Infosys had two extra days of working. We are expecting 4.5 per cent of volume growth. Due to the cross-currency movement, the US dollar volume growth would be get impacted by 90 basis points. We are expecting 3.6 per cent US dollar term revenue growth on a quarter to quarter basis. We are expecting a margin expansion because of the currency depreciation against US dollar of 250 basis points. So at the bottom line it would translate into almost 18.2% quarter on quarter growth for Infosys.
Stocks from rate sensitive sectors have been witnessing an uptrend on hopes of rate cut by the Reserve Bank of India at its policy meet. However, the analysts are of the view that inflation might have peaked but the central bank will take some time to follow suit.
Meanwhile, the RBI has ruled out the possibility of a cut in the cash reserve ratio, or CRR, in its monetary policy review on January 24, according to bankers who took part in the customary pre-policy meeting held by the central bank on Tuesday.
BSE Midcap Index was up 1 per cent and BSE Smallcap Index moved 1.32 per cent higher.
Amongst the sectoral indices, BSE Realty Index was up 4.64 per cent, BSE Metal Index moved 2.26 per cent higher and BSE Bankex gained 1.12 per cent. BSE IT Index was down 1.42 per cent and BSE FMCG Index declined 0.68 per cent.
Hindalco Industries (4.96%), DLF (4.58%), Sterlite Industries (4.28%), Tata Steel (2.21%) and Hero MotoCorp (1.68%) were the major Sensex gainers.
Mahindra & Mahindra (-1.98%), Tata Consultancy Services (-1.74%), Bharti Airtel (-1.62%), Jindal Steel (-1.54%) and Cipla (-1.36%) were the major losers.
Market breadth was positive on the BSE with 1868 gainers against 951 losers.
News bureau,
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