Market may be positive on global cues; IT, Tata Steel in focus

The market is likely to react positively to strong global cues on Monday. Support of Nifty is seen at 8200 while resistance is likely at recent high of 8398.45.      

On Friday, the 30-share BSE Sensex fell 74.59 points to 27126.90 and the 50-share NSE Nifty slipped 14.70 points to 8323.20. The market breadth remained negative throughout the session as about 1556 shares declined against 1153 advancing shares on the Bombay Stock Exchange.

GST Bill that is likely to be tabled in the monsoon session of Parliament and June quarter earnings are the two important events to watch out for in near term, say experts.

Among global markets, Asia enjoyed a relief rally as upbeat US jobs data lessened immediate concerns about health of the world's largest economy, though long-run fallout from Brexit kept sovereign yields near record lows.

MSCI's broadest index of Asia-Pacific shares outside Japan, While Australia added 1.3 percent. Japan's Nikkei climbed 2.9 percent in the wake of a clear win by the government in upper house elections.

Prime Minister Shinzo Abe's ruling coalition won a landslide victory giving it the power to potentially revise the nation's post-war pacifist constitution for the first time.

One major event this week will be a Bank of England meeting on Thursday when it might well cut its 0.5 percent rate to offset the drag from the vote to leave the European Union.

Back home, IT stocks will be in focus today as two US lawmakers introduced new visa bill in the House of Representatives. The new bill proposes that companies who have more than 50 employees and 50 percent employees on H1-B and L1 cannot hire more H1B employees.

Also, Tata Steel will be keenly watched as it said that the company is exploring strategic alternatives for UK business. It is also considering joint venture opportunities with various players including Thyssenkrupp. Liberty house says will continue to  discuss UK acquisitions with Tata Steel. IndusInd Bank will declare its Q1FY17 results today.

Mumbai-based IT services provider Larsen & Toubro Infotech, the subsidiary of engineering and construction major L&T, will open its 1.75 crore shares initial public offer today. The price band is fixed at Rs 705-710 per share.

Meanwhlie, among other asset classes sterling was stuck at USD 1.2948, having failed utterly to rebound from the 13 percent loss suffered in the immediate wake of Brexit.

The Japanese yen eased a little to 100.80 per dollar, while the euro stayed on the defensive at USD 1.1043having touched a low of USD 1.1003.

In commodity markets, spot gold was a shade higher around USD 1,369.70 per ounce. Crude prices edged down to near two-month lows on seasonally weak consumption, despite comments from Saudi Arabia's oil minister that the oil market was becoming more balanced.