Oil marketing companies and realty stocks may remain weak today

Bull market or bear market?

Nifty 50 index to remain weak, as we have broken the 200-day moving average of 10785 levels.

Stocks likely to be in limelight today?

Oil marketing companies (OMO) and realty to remain weak, while IT stocks would be key to watch.

Sectors likely to impact market today?

Banking and NBFC could witness more selling pressure if it continues to trade below its short-term average of 26850 levels. Nifty IT index has closed near the 200-DMA. If the Nifty IT index slips below 14300 levels we will see selling in IT stocks.

Your mid-term view?

We would affirm our positive stance only if Nifty 50 index manages to scale above 10800 levels over the next two-three trading sessions. The third quarter results, starting next week, will be key to watch in the medium term.

What drove markets on Thursday?

Nifty 50 index opened lower on back of weak global cues, and continue to trade with a negative bias. The market turned volatility in the last one hour of trade ahead of the weekly expiry in Bank Nifty. Among sectors except for FMCG and realty, we witnessed profit booking in metals, media and energy sector that lost 2.2%, 1.9% and 1.6%, respectively.

Vikas Jain, senior research analyst, Reliance Securities