Markets to open flat; Bank shares in focus

Markets are likely to open flat on Monday with rate sensitive shares in action ahead of the RBI policy meet tomorrow. However, profit taking at higher levels is likely to cap upside gains.

At 8:30AM, the early indicator SGX Nifty was down 10 points at 8,675.

Technical analysts suggest that since the Nifty has managed to surpass the resistance the of 8,550 levels which is a bullish signal.

“The index has managed to hold the crucial support of 8,450 levels and bounced sharply and has formed a short-term bottom. One should maintain a positive bias in the near-term for an upside target of 8,700 & 8,750 levels,” says Vikas Salunkhe, a technical analyst with Nirmal Bang in a morning note.

Global Markets

Asian markets opened higher after discouraging US jobs data signalled that the US Fed may not cut interest rates soon. However, profit taking at higher levels pared all the early gains with most markets in the region closed for trading today. Japanese shares were trading with marginal losses down 0.2% while Straits Times was trading flat with negative bias. Stock markets in Hong Kong and China are closed today

US markets snapped two day losing streak to end higher on Thursday ahead of the March jobs data due for release on Friday. The Dow Jones industrial average rose 65 points to 17,763, the S&P 500 gained 7 points to close at 2,066.96 and the Nasdaq Composite ended 7 points higher at 4,886.94. Further, the Labour Department on Friday said that 126,000
jobs were added in the March. The job additions were the smallest increase since December 2013.

Stocks to watch

Among the rate sensitive shares, bank shares will be in focus ahead of the RBI policy meet tomorrow.

Wipro may see some action after the IT major inducted four new members into its group executive council. The new members include Abid Ali Neemuchwala, the newly-appointed group president and chief operating officer (COO); and Anand Padmanabhan, chief executive and president of the energy & utilities business unit.

Nalco may gain after the company achieved highest ever gross turnover of Rs 7,774 crore (provisional) against Rs 7,024 crore recorded in 2013-14, an increase of more than 10%.

NTPC may be in focus amid reports that the country’s largest power producer will more than double its current installed capacity to 90,000 MW in the next ten years.

Bharat Electronics will be in focus after the state-owned company reported provisional figures for fiscal 2014-15 with 8% growth in turnover at Rs 6,671 crore.

SBI will be in action after the state-owned bank allotted 10.04 crore shares on preferential basis to Government of India at Rs 295.59 per equity share.

Aurobindo Pharma is likely to edge higher after the company today said it has received USFDA approval for Sildenafil injection used for treating adult patients (18 and above years) with pulmonary arterial hypertension.

AstraZeneca Pharma India may firm up after the company entered into an agreement with AstraZeneca UK Ltd for reimbursement of certain costs incurred for marketing and promotion of new product launches.

Bosch may see some pressure after the company declared a lockout after a go-slow strike by Labour Union and workmen of Jaipur plant.

Adlabs Entertainment will make its debut on the bourses today. The offer price was revised lower to Rs 180-215 from Rs 221-230 earlier because of poor response from institutional investors.  Bharat