Market check: Flat to positive opening seen

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Even as the National Stock Exchange's benchmark 50-share Nifty continues to hold the psychological level of 5,000, experts say markets will continue to have an upward bias but advise caution.

"The market will have flat to positive opening today," Technical Analyst Ashwani Gujral said, adding that ahead of futures and options (F&O) expiry, some volatility would be seen.

"So far the market has found a resistance near the 5000 mark and stayed put," Technical Analyst Prakash Gaba said.

"The market needs to spend some time here and consolidate if it has to go up and assault the high of 5,182 and so a dip would be healthy for the market if it comes and I would like to watch the crucial support of 4,940 and trade long as long as 4,940 holds," Gaba said.

Fundamental analysis

Deven Choksey of KR Choksey Securities said the Nifty may be ranged between 4,900 and 5,125 with an upward bias for the first two days while profit-booking may be seen towards the week-end. "Investors will closely watch the RIL deal and the possibility of its turning EPS accretive."

Over the short term though, the trend remains cautious, said Prabhat Awasthi, Nomura Financial Advisories. "The market could see some downside over the short term due to rising inflation. India faces additional problem of food inflation," he said. "Rate sensitives have potential to underperform but a fall of more than 10% would be buying opportunity."