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Markets open flat tracking a negative bias; Tata Steel up 4%

Indian benchmark indices opened flat, with a negative bias, tracking muted global cues.

twitter-logo Diksha Ramesh   New Delhi     Last Updated: May 17, 2017  | 14:59 IST
Markets open flat tracking a negative bias; Tata Steel up 4%

Indian benchmark indices opened flat, with a negative bias, tracking muted global cues as Asian shares opened flat on Wednesday with China's Shanghai Composite, Hang Seng index and Nikkei 225 were trading lower.

The Sensex was trading at 30,585.24, up 2.64 points (0.01%) while the Nifty50 was trading 9,503.90, down 8.35 points (0.09%)

Tata Steel was the top gainer on BSE 30, adding 4.49 per cent while Dr Reddy's and ITC were top laggards.

Tata Steel's gains can be attributed on the back of a stellar numbers for the fourth quarter on a standalone basis, which was largely boosted by an outperformance by operating profits.

The Tata Group firm narrowed its consolidated net loss to Rs 1,168 crore against a loss of Rs 3,042 crore posted during the same period last year.

Among buzzing stocks are Sobha Ltd, Dhanlaxmi Bank, Dishman Pharma and Whirlpool.

Yesterday, the Indian markets soared to record heights for the second straight session on Tuesday as investors remained bullish by the early onset of monsoon amid quarterly earnings cheer.

Benchmark Sensex finished at a fresh lifetime high of 30,583 while the broader Nifty closed above the 9,500-mark for the first time.

"A breakout is seen in Indices with range being breached and a new range may be established over a period of time. As per candlestick pattern a bullish breakout is seen based on bullish mat and hold pattern," said Mustafa Nadeem, CEO, Epic Research.

He added that this high is most likely to set a tone for coming resistance levels 9550-9610 while support is seen inching higher at 9400 -  9350.

"Though we are seeing demand coming in at lower levels since we are in a bullish trend and previous swing lows are intact," said Nadeem.

Epic Research is bullish on PSU banks and Metals space since a lot of buying interest in them is seen with higher volumes and rising open interest.

"With that we are seeing a buying momentum build up in Pharma space indicating a short term reversal. As per Derivatives data we are seeing higher buildup in 9600 - 9700 strikes while activity is seen at 9300 strike prices as well so that may be the range going forward in broader indices as well," he said.

Even global markets soared in yesterdat's trade. The tech-heavy Nasdaq closed at a record for a second session in a row. The benchmark stock index in UK set another record high on Tuesday, passing 7,500 for the first time ever to place it on track for a record close.

Investors are on the watch out for Hindustan Unilever, JSW Steel, IOB, Allahabad Bank, Bajaj Finserv, Bajaj Finance, MRPL and United Beweries whose earnings report are due today.

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