Nifty may open July series on positive note, auto sales in focus

The market is likely to open July Futures & Options (F&O) series on a positive note as global market continued to rally. On Thursday the Nifty hit fresh 2016 high, rising 1 percent on short covering and value buying support from domestic institutional investors. The 50-share NSE Nifty ended at 8287.75 - the highest closing level since October 23, 2015 - on expiry day for June futures and options contracts, up 83.75 points or 1.02 percent from its previous day's value but failed to hold 8300 level. The 30-share BSE Sensex ended tad below the 27000-mark, up 259.33 points or 0.97 percent at 26999.72 on support from banking & financials, FMCG, telecom and Tata Group stocks.The macro economy continues to send mixed signals as eight core sectors grew by just 2.8 percent in the month of May-the slowest pace of growth so far this year.

Auto sales data will be released today. Dealer checks indicate trend is positive with heavy commercial vehicle segment to see 25 percent growth versus 20 percent last month while two-wheeler segment to see 10-12 percent growth.

Asian stocks rose as global riskier assets continued to recover from last week's Brexit shock, while the pound came under renewed pressure after the Bank of England's governor hinted of an interest rate cut ahead.MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent. The index has recovered nearly all the losses suffered last Friday when it plunged in response to Britain's decision to leave the European Union.The Dow climbed 1.3 percent on Thursday, posting its third straight days of gains and erasing a bulk of its losses after Brexit. Some of the overnight gains on Wall Street were attributed to hopes for more monetary easing after BOE Governor Mark Carney said on Thursday the central bank would probably need to pump more stimulus into Britain's economy over the summer in wake of the Brexit shock.In other asset classes, Brent crude is trading above USD 50 per barrel. In currencies, pound weakened post dovish comments from Bank of England governor.