Indian markets likely to open on a flat to positive note

Indian markets eventually broke out of the consolidation phase, where Nifty closed above 8595 at 8636 levels; while Sensex gained nearly 292 points at 28095 levels. Nifty posted its new 52 week high at 8641 levels. The move was driven by PSU Banking sector gaining more than 3.5 per cent led by PNB that closed almost 9 per cent up. All others ended in green.

Wall Street was dragged down from its record highs by the slide in oil prices and thereby the energy stocks, while investors remained cautious ahead of the Federal Reserve policy review during the week. Dow and S&P500 closed marginally down by 0.42 per cent and 0.3 per cent while Nasdaq closed flat. WTI Crude fell 2.4 per cent to 43.13 USD/barrel.

On the contrary European markets ended with slight gains after a choppy trade, led by upbeat earnings offsetting the fall in oil prices. Germany’s main index DAX closed half a per cent up at 10198 while France’s CAC40 closed flat to positive with 0.16 per cent gains at 4388. Meanwhile, Britain's FTSE 100 saw weakness and tumbled 0.3 per cent at 6710.

Following previous day’s downbeat few indices in Asian markets opened with a sharp weakness tracking pessimism in the US markets ahead of the FED meet. Yen strengthened after media reports indicated weakness in government’s easing stimulus mechanism. Nikkei has dropped 1.55 per cent at 16362. However, Hang Seng has recovered and is trading marginally up with 0.44 per cent gains at 22110. The Shanghai Composite index has increased by 0.6. Australia’s S&P/ASX 200 Index has decreased by 0.31%; while New Zealand’s S&P/NZX 50 Index remains flat. South Korea’s KOSPI is flat to positive with 0.15% change.

Post breakout, markets may remain in positive trajectory but with slight volatility ahead of expiry of July F&O series. SGX Nifty index future for July series is trading on a flat to positive note in the range of 8637-8650. On July 26 we have major stock results viz., ACC, Ambuja, IDFC, Dr. Reddy's, etc., to watch out for.