Pre Open Thoughts: Sluggish Movement!!!

Pre Open Thoughts: Sluggish Movement!!!

Ø  To succeed you need to find something to hold on to, something to motivate you, something to inspire you. Although the start to May series of derivative contract  hasn’t been good to hold , we still have a long way to go in the summer. The market could consolidate in a sideways fashion in the near term.

Ø  Most participants won’t want to take a chance till they find any clarity on the GAAR issue from the government. The start today is likely to be circumspect. Asian markets are positive  after taking cues with a positive finish on Wall Street overnight. Key European markets though ended in red.

Ø  Keep an eye on FII flows, which lately have been tapered. The Small-Cap and Mid-Cap stocks have corrected much more than the Large-Cap peers in the past two sessions. They had out-performed the frontline shares prior to this week's pullback. One must exercise caution and restraint while dealing in these shares.

Ø  Over all to cut the long story short we might see sluggish movement in key indices as market players remain cautious.

Ø  Trading in the remainder of the week will be underpinned by results and data (local and global). The Nifty has been moving in a narrow range for the past few sessions in the absence of participation of foreign institutional investors.

Ø  As written in our previous notes we on Nifty 5180 is the level to watch . Decisive break below this level might take nifty upto 5000-5050 levels.

Ø  HUL and FMCG stocks will be in focus after the sector bellwether announced strong Q4 earnings. Auto stocks will also be in the spotlight after companies reported March sales.

Ø  Bharti Airtel and Hero MotoCorp will announce their Q4 numbers today.

Results Today:

Bharti Airtel , Hero Motocorp, Birla Corp, Kansai Nerolac Paints, Esab India, Timken India , SPARC, Orient Paper & Industries ,Century Textiles & Industries, Century Enka & VIP Industries.

Global Data To Watch:

China HSBC manufacturing PMI, Germany manufacturing PMI, Germany unemployment rate, Eurozone manufacturing PMI, UK M4 money supply, UK construction PMI, Eurozone unemployment rate, US ADP employment report, US factory orders and speech by the Richmond Federal Reserve Bank President Jeffrey M. Lacker.