Will today see a bloodbath on Dalal Street?

The Nifty is likely to have a gap down opening, in line with other Asian markets, as the aftermath of the Greek referendum created panic across financial equities and investors made a dash towards safe haven buying in Gold.

The SGX Nifty was trading 80 points lower at 8,411 points in Singapore, pointing to a similar start in India. However, domestic institutions are likely to step in and provide support at lower levels and stem the tide ahead of quarterly results. The spread of the monsoon rains across the nation and the impending session of Parliament will also decide the course of markets.

The Nifty was in a mild uptrend in the latter part of last week, owing to short covering, so a part of those gains may be erased in early deals. Some selling may be seen around noon when European markets open and react to the Greek vote.

Meanwhile, the Greeks handed embattled Prime Minister Alexis Tsipras a resounding victory by rejecting further spending cuts and tax increases in an unprecedented vote on late Sunday night.

``The mandate that you have given me does not call for a break with Europe, but gives me great negotiating strength,'' Tsipras tweeted after 61 percent of the votes were against more austerity in a nation whose GDP has shrunk by a fifth in the last five years and unemployment is a high 25 percent. Greece failed to make a $1.7 billion payment to the IMF earlier this week, putting the nation technically in a default. Tspiras called for a referendum on July 5 against making further payments and negotiating a better deal with the EU.

STOCKS TO WATCH:

COAL INDIA: Global brokerage HSBC raises its price target on the Coal producer to `490 from `372 per share as the nation's largest coal miner builds more railway lines to evacuate coal from its mines.

(Image credit: Indiatimes)