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Nifty Struggles Below 8,150, TCS Flat Ahead of Q2

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BSE Sensex and Nifty struggled today amid weak Asian markets. The Sensex was off 31 points at 26,872 while Nifty slipped 4 points to 8,139 in early trade.

Here Are Top 10 Developments:

1) Market heavyweight TCS, which will announce its earnings after market hours today, was trading almost flat. Analysts expect India’s biggest outsourcer to post a 3.6 per cent sequential growth in  dollar revenues. But the management commentary for the second half will be keenly watched as it is traditionally a weaker period for IT companies.

2) Infosys, which fell nearly 4 per cent, on Monday, extended losses. It was down nearly 2 per cent. Analysts attributed the selling pressure in Infosys stock to revenue guidance being maintained despite strong Q2 earnings.

3) Metal and oil & gas stocks were under pressure after an overnight tumble in global oil prices amid oversupply concerns. ONGC, Tata Steel, Hindalco and Vedanta were down 2-3 per cent.

4) Analysts say that markets are likely to draw support from strong factory output data which rose to a 3-year high of 6.4 per cent in August.

5) Capital goods and consumer durable stocks saw some buying after factory data showed the sectors posting strong growth during the month. L&T gained 0.50 per cent while BHEL rose 0.90 per cent. Consumer durable stocks Blue Star and Videocon rose 1-2 per cent.

6) On the other hand, a rise in some food prices lifted retail inflation in September to 4.41 per cent after it had hit a record low in the previous month, but inflation is expected to remain low thanks to falling global commodity prices. Rate sensitive stocks like banking and auto were flat.

7) Domestic institutional investors, who have all along been strong buyers of Indian equities in the past few months, have been net sellers in the past five sessions, putting pressure on markets at higher levels.

8) Analysts say that Nifty faces strong resistance at 8200-8225 levels and has support at 8,100 levels. A breach of 8,100 levels could accelerate selling pressure in the Indian markets, they say.

9) Gaurang Shah of Geojit BNP Paribas Financial Services said that it will be difficult for Nifty to sustain above 8,200 levels. Markets are unlikely to draw much support from the earnings and the Bihar election results would provide direction to the markets, he added.

10) Asian markets were mostly lower today with Japan’s Nikkei down 1 per cent while China markets off 0.40 per cent. A near 18 per cent slump in Chinese imports added to worries about a slowdown in the world’s number two economy, sending Asian equities and emerging currencies lower as investors flocked to safe assets.

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Nagaraju Tadakaluri
Nagaraju Tadakaluri is a Professional Web Designer, Freelance Writer, Search Engine Optimizer (SEO), Online Marketer, Multi Level Marketer (MLM) and Business Promoter. Have developed Latest Updates in hopes to educate, inform and inspire.

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