Both Nifty and Sensex have opened with positive gaps, following global cues, and short covering was visible in Nifty futures during the entire day, as the discount on Nifty futures vanished at the end of the session. Nifty encountered resistance at 4618 and Sensex at 15555, where downward gaps are created on 06.06.2008, remain to be covered, thus bears became active once again. Crude movement is now almost deciding the trend of global markets, as it is moving in a band of US $ 130 to 140 for the past few days. Yesterday, crude became volatile, so too US markets, which opened in negative territory, but recovered later. While Dow closed in negative territory, Nasdaq posted gains on closing basis. Asian markets are trading mixed with marginal gains currently. Singapore Nifty futures are currently quoting at 10 point discount indicate marginal flat to negative opening. VIX closed at 29.02 shade lower, but volatility shall continue.
Advance Tax payments by financial institutions are known, which indicate that they are in line with market expectations. SBI, ICICI Bank have paid more while Sail has paid same figure, as per the reports known through channels, from sources. Monsoon is actively spreading across the country, Delhi after a long gap of 108 years received monsoon showers, much earlier than usually scheduled, gives hope that it shall help agricultural sector performance and in turn rural incomes is welcome sign for equities. Government has raised excise duty on more than 1500cc vehicles including cars to discourage consumption of petrol/diesel, which hurts automobile sector, which is already languishing due to raise input costs and increase in crude etc., Port folio churning shall be likely, pricing in winners of Q-1 performance based on advanced tax numbers, as they trickle in, and volatility shall be high, due to the same.
Range for the Day: Nifty might move in the range of 4500 to 4650.
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