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Indian Indices: Asian indices saw profit booking on opening bell as after a heady rally for last 6 weeks, markets turn cautious. Weakness in Euro against the US Dollar also saw profit booking in currencies along with equities also coming under selling pressure.

Nifty scaled 9600 with ITC, HUL, Maruti and Reliance end as top gainers while the broader markets saw deep correction led by Pharma and ADAG stocks. With breadth getting skewed heavily and losers far outnumbering gainers caution to be the buzzword as indices looking overbought. For today expect mid-cap weakness to continue and select large cap buying to be the theme as foreign investors turn big sellers. 

The BSE Sensex is currently trading at 31132.28, up by 23.00 points or 0.07% after trading in a range of 31064.04 and 31220.38. There were 19 stocks advancing against 11 stocks declining on the index. The broader indices were trading mixed; the BSE Mid cap index was up by 0.02%, while Small cap index was down by 0.32%.

The CNX Nifty is currently trading at 9606.25, up by 1.35 points or 0.01% after trading in a range of 9581.20 and 9631.60. There were 28 stocks advancing against 23 stocks declining on the index.

Technical view: Nifty will see resistance around 9650 while 9550 will act as first support on the downside. Bank Nifty also sees strong resistance around 23500, while 23000 will be first support which if broken can see 22800 being tested.

Hero Motocorp (Buy Above 3668 with Stop Loss at 3647 for Target of 3710): After consolidating for over two weeks, the stock has broken out from a Flag Pattern on the daily charts indicating that a speedy up move is on the cards. Hero Motocorp has reversed from its 15-DMA convincingly and has also seen credible uptick in traded volumes. Other oscillators also indicate that the current momentum is here to stay.

Derivative Snippets    

The Health Products Regulatory Authority of Ireland has granted certificate of good manufacturing practices (GMP) compliance to Wockhardt's Aurangabad facility after an inspection.

In the last trading session, Nifty ended on a lacklustre note amidst huge sell-off in Pharma heavy weights. Nifty ATM call option strike continues to see short covering along with fresh long build up in the futures contract, indicating a continued uptrend up to the resistance level of 9700.

FIIs were net sellers in cash market segment to the tune of Rs 710 Cr.

FIIs index future long short ratio at 5.7x with an addition of fresh long positions to the tune of ~21k contracts

Nifty Movers: The top gainers on Nifty were AurobindoPharma up by 8.72%, Dr. Reddy’s Lab up by 2.72%, NTPC up by 2.65%, Lupin up by 2.23% and ICICI Bank up by 2.18%. On the flip side, BPCL down by 2.64%, Power Grid down by 2.58%, BhartiInfratel down by 2.10%, Zee Entertainment down by 1.74% and Coal India down by 1.70% were the top losers.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Healthcare up by 1.63%, Bankex up by 0.32%, IT up by 0.22%, Auto up by 0.17% and Utilities up by 0.10%, while Realty down by 1.37%, Capital Goods down by 1.15%, Power down by 0.92%, FMCG down by 0.83% and Consumer Durables down by 0.80% were the losing indices on BSE.

On the global front: On the global front, Asian shares were trading mostly in red. Stocks in Japan retreated as the yen strengthened. In economic news, Japan household spending dipped 1.4% for the month of April, weaker than the 0.7% forecast. Meanwhile, April retail sales rose 3.2% on year, compared to a forecast of a 2.3% rise.

Global Signals:The Asian markets were trading mostly in red; Nikkei 225 decreased 19.63 points or 0.1% to 19,662.94, KOSPI Index decreased 10.83 points or 0.46% to 2,342.14 and FTSE Bursa Malaysia KLCI decreased 0.67 points or 0.04% to 1,764.22. On the other hand, Jakarta Composite increased 11.48 points or 0.2% to 5,723.82. Shanghai Stock Exchange, Hong Kong Stock Exchange and Taiwan Stock Exchange were closed on account of national holiday.