Top things to look out for in the markets today

The Nifty may consolidate with an upward bias on Friday as the new derivatives expiry takes root and traders pick out winners from the pile of first quarter earnings that have hit the market. Funds are likely to work towards boosting their Net Asset Values on the last day of the month. Overseas cues are muted.

Investors will take heart from the government's move in allowing 49 percent foreign portfolio investment automatically in most industries.

There is market chatter of an impending, large cut in petrol and diesel prices as global crude oil futures dip further. This will be a sentiment booster for oil refiners in particular and in general on Dalal Street. However, major earnings so far have either been tepid or weak as the much-touted corporate revival failed to take route. There were more disappointments than cheers among the top 100 companies that reported earnings so far. Hence, the shift to quality will become more pronounced as investors seek the safety of predictable and growing earnings.

Meanwhile, the SGX Nifty signals a 15-point gap up opening for the Nifty on Friday.

Global cues are flat. Major Indices in the US gained between 0.1-0.3 percent. Top Indices in EU added 0.4-0.6 percent. Some markets in Asia such as those in Japan and Hong Kong are trading with strong upticks on Friday. Cues from the commodity space are modestly positive. Gold Futures slipped further to fresh 5-1/2 year lows; Oil Futures fell and the metal complex shows no signs of edging up.

Meanwhile, the Nifty Index closed at 8,421 points, up 47 points, on Thursday, its 2nd day of gains. The index is trading around its 200-DMA, indicating a decisive battle being fought between the bulls and the bears. The Nifty has a strong support at 8,315 levels while the resistance is seen at the 8,450-8,500 point level.

Sentiment is mixed in the cash market. Foreign Institutional Investors posted net sales of 171 crores on Thursday, their 4th day of sales. This was easily countered with net buys of 500 crores from domestic investors. The derivatives space saw sales worth 212 crore rupees for Index Futures; Sales of 65 crore rupees for Stock Futures; Sales of 881 crore rupees for Index options and net buys of 11 crore rupees for Stock Options.

Major Earnings today are ICICI Bank, Larsen & Toubro, Shoppers' Stop and Reliance Communications

PSU BANKS: The Finance Minister will seek parliamentary nod for the first tranche of bank's recapitalisation.

KOTAK BANK: First quarter earnings disappoint as the bank digests its purchase on ING Vysya Bank. Merger costs hit profitability.

HCC: First quarter earnings fall below expectations

GATI: Earnings for April-June disappoint.

(Image credits: Indiatimes)