Mumbai: Like the movement seen on Monday, share indices are set to experience a volatile session today on account of extended profit booking and rollovers as the May futures and options expiry inches closer.

But a positive start is seen on the cards as equities get a fillip from India’s Jan-Mar current account deficit data.

n the last quarter of 2013-14 (Apr-Mar), the current account deficit came in at $1.2 bln as compared to $18.1 bln a year ago. Against 3.6% of the gross domestic product last year, the current account gap this year is only 0.2%, primarily because of lower trade deficit.

The gains, however, may not sustain due to profit taking at higher levels as positive data has largely been factored in to the recent rally, thereby resulting in rangebound trade for indices.

“For the coming sessions, 7270 and 7230 will remain important support for the market (Nifty),” Shrikant Chouhan, head of technical research at Kotak
Securities, said.

Chouhan added a decline towards 7230 points will be an opportunity to buy in frontline stocks.

On the upside, most market participants see 7450 acting as resistance.

Monday, National Stock Exchange’s Nifty ended at 7359.05, down 8.05 points or 0.1%. The S&P BSE’s 30-share Sensex ended at 24716.88, up 23.53 points or 0.1%.

That apart, action is expected to remain largely stock-centric amid the last week of earnings for Jan-Mar.

Today, Bharat Forge, Jaiprakash Associates, JSW Steel, NHPC, Power Finance Corp and United Breweries will be among the major companies reporting their earnings.

Shares of GAIL (India), which reported its earnings post market hours Monday, are expected to fall as the gas major reported net profit of 9.7 bln rupees, below the estimated 14.23 bln rupees, due to fall in transmission
volumes and lower profitability in petrochemical business.

Edelweiss Financial Services shares are set to fall as PwC, in its audit report, has named the company, among others, as being involved in the multi-crore wash trades on Multi Commodity Exchange of India between 2003 and 2013.

Wockhardt shares may fall as the company’s quarterly profit declined nearly 78% on year to 744.5 mln rupees.

Tilaknagar Industries and Peninsula Land could also slip due to weak earnings.

Sonata Software, Jubilant Life Sciences, and Praj Industries are expected to gain on strong growth in quarterly net profit.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal