Markets are likely to open higher, amid firm global cues, after they gained in the previous five straight sessions hitting one-month closing highs. However, profit taking later in the day is likely to cap upside gains.
At 8:30AM, the early indicator SGX Nifty was down 3 points at 8,806.
“Technically, the market has extended its recent pull bull back beyond 50% retracement resistance and that might have triggered short covering in the market. Weak stocks have taken active interest in moving the market upward like Reliance Inds and Tata Steel,” said Shrikant Chouhan, head of technical research at Kotak Securities in a note.
“We feel that it’s a “V” shape recovery trend of the market and major volatility above major supports 8700/8680 may be an indication of major up move in the near term. In such a scenario, we may even see the nifty very close to 8950/9000 in the near term. Fresh buying will trigger if Nifty manages to break 9130 in next 3 weeks of time. Expect weakness only below the level of 8680,” he adds.
Asian shares extended gains to hit fresh 15-year highs tracking overnight gains on Wall Street while loan payment of 450 million euros by Greece also aided market sentiment.
Japanese shares advanced further with the benchmark Nikkei topping the 20,000 mark for the first time since April 2000. However, profit booking above 20,000 capped further gains and the Nikkei was trading flat.
Meanwhile, Hong Kong shares also witnessed profit taking after sharp gains in the previous few sessions which lifted the Hang Seng to fresh seven-year highs. The Hang Seng was trading flat with negative bias. Further, Shanghai Composite staged a recovery today and was up 0.7% while Straits Times was up 0.3%.
Major US share indices ended higher on Thursday amid a rally in energy shares after Brent crude prices rebounded after a sharp decline on Wednesday. Exxon Mobil gained 0.7% while Chevron Corp gained 0.27%. The Dow Jones industrial average ended up 0.3% at 17,958.73, the broader S&P 500 ended up 9 points at 2,091.19 and the tech-laden Nasdaq rose 24 points at 4,974.57.
STOCKS IN FOCUS
Hindalco could see some pressure after US-based aluminium major reported lower-than-expected revenues.
Telecom stocks will be in focus after the Telecom Regulator Authority of India reduced the tariffs on roaming for outgoing local calls and incoming calls on roaming. It has also mandated telecom service providers to offer a special roaming plan.
Max India may gain after the Competition Commission approved Max India’s proposed corporate restructuring plan to vertically split the company through a demerger into three separate listed firms.
Biocon may gain on reports that it has received approval for its Insulin Glargine by Cofepris, the Mexican health authority, through its partner PiSA Farmaceutica.
Neyveli Lignite will be in action after the company said that Unit II (500MW) of Tuticorin Power Project has been test synchronized with the Grid on April 09, 2015.
Mangalore Refinery and Petrochemicals could see some action after the board at its meeting on Thursday formed a committee to explore and evaluate options for integration of the company and ONGC Mangalore Petrochemicals Ltd for better synergy within the group.