Share market expectations: 5 things to know before tomorrow's opening bell

Ending the five-session rally, equity benchmarks - Sensex and Nifty - ended lower on Wednesday. The 30-share Sensex fell 59 points, dragged by losses in Infosys, HUL and HDFC Bank, tracking weak global cues. Sensex closed 58.81 points, or 0.16 per cent, lower at 37,871.52. Similarly, the NSE Nifty fell 29.65 points, or 0.27 per cent, to close at 11,132.60.  Auto, IT and PSB stocks dragged markets lower.

HUL, Tata Steel, Infosys, Maruti, IndusInd Bank, L&T, Asian Paints, TCS were among the major laggards. On the other hand, Axis Bank, Titan, PowerGrid, ITC, NTPC and Reliance Industries were among the gainers.

"Nifty has almost tested the 11,250 today so some consolidation cannot be ruled out. In absence of any major event, markets would continue to take cues from the ongoing earnings season as well as global markets. Besides, it would await more data on how demand and economy recovery is panning out amid the pandemic. Traders should maintain positions on both sides and limit leveraged trades," said Ajit Mishra, VP - Research, Religare Broking.

Here are 5 things to know before Wednesday's opening bell

Global markets

Weak cues from global markets kept investors cautious in today's trade. Bourses in Hong Kong, Seoul and Tokyo ended in the red, while Shanghai settled on a positive note. Stock exchanges Europe were trading with significant losses in early deals. The investors are expected to strategise accordingly ahead of tomorrow's trade.

Earnings

Bajaj Auto posted weak earnings for Q1 today as profit halved compared to corresponding quarter of last fiscal. Even engineering major Larsen and Toubro (L&T) posted a sharp fall of 68 per cent in net profit. The investors would be keenly waiting for tomorrow for firms such as Biocon, Dish TV, PNB Housing Finance, HDFC Asset Management Company, among others to declare their Q1 results.

Crude oil

Oil prices fell as data showed a bigger than expected inventory build in the US where a rise in coronavirus cases could further hit fuel demand, Reuters reported. Brent crude fell 60 cents, or 1.4 per cent, to $43.72 a barrel. US West Texas Intermediate (WTI) crude dropped 70 cents, or 1.7 per cent, to $41.22.

Coronavirus

India reported a rise of 37,724 coronavirus cases and 648 deaths in the last 24 hours, as mentioned by the Health Ministry. With this, India's coronavirus positive cases stand at 11,92,915. There are a total of 4,11,133 active cases and 7,53,050 cured patients, according to data by the ministry. The country's death toll has climbed to 28,732.

Technical insights

"Though, Nifty showed higher levels of weakness today (from the high of 11,238), still there is no confirmation of any reversal pattern yet at the highs. The positive chart pattern like higher tops and bottoms is intact and any minor downward correction could be viewed as a part of a higher bottom process. As per this pattern, the decline should halt around 11,000-10,950 levels in the next few sessions," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

"Nifty can consolidate in the range of 11,250-11,300 for a few days. We would advise investors to continue with their defensive portfolio approach given the high valuations and maintain stock specific approach. Traders on the other hand are advised to stay cautious and keep booking profit at regular intervals," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.Also read: Govt warns 59 Chinese apps of serious action if found operating despite ban

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