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Indian Indices: Asian markets opened on a weak note with the Japanese 'Nikkei' down over 300 points as US Dollar weakness witnessed a stronger Yen. Oil weakness coupled with uncertainty on the health bill in the US saw profit booking in the US indices now turn ugly as stocks sold off further.

Nifty managed to hold 9100 by the skin of its teeth, which indicates the markets looking top heavy and susceptible to profit booking. Nifty will see Reliance hold the key as SEBI decision to ban derivative contracts for 1 year will have a sentiment negative, which however will be used by long term investors as an opportunity to buy Metals, Commodities and Energy stocks. The markets might see selling while Pharma and FMCG may see defensive buying for today. 

The BSE Sensex is currently trading at 29258.66, down by 162.74 points or 0.55% after trading in a range of 29247.56 and 29420.70. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.13%, while Small cap index was up by 0.10%.

The CNX Nifty is currently trading at 9055.55, down by 52.45 points or 0.58% after trading in a range of 9047.95 and 9094.85. There were 11 stocks advancing against 40 stocks declining on the index.

Technical view: Nifty will face resistance around 9133, which was Friday's high while 9030-9040 will act as resistance on the downside. Bank Nifty faces resistance around 21250 with 20800 acting as support as PSU banks continue to see buying on declines.

Federal Bank (Buy above 90, for Target of 96, Stop Loss at 87): After being stuck in a narrow trading range for past 3 weeks, the stock has broken out from an Ascending Triangle pattern on the daily chart. Federal Bank has maintained its higher lows and has finally surpassed its previous peak resuming its higher high cycle too. The breakout has also been accompanied with rise in volumes confirming the price outburst.

Derivative Snippets:

In the last trading session, Nifty ended on a lackluster note. Nifty Bank index surged higher as PSU Bank stocks shimmered. Huge short covering was seen in Nifty Bank 21000CE strike, indicating a likely close above 21000 level for Nifty Bank index in this F&O expiry series. Nifty ATM/OTM call/put option strikes were under selling pressure throughout the day.

FIIs were net buyers in cash market segment to the tune of Rs 543 crore.

FII’s index future long/short ratio at 3.5x.

Nifty Movers: The top gainers on Nifty were Bank of Baroda up by 1.24%, Infosys up by 0.85%, BhartiInfratel up by 0.60%, Power Grid up by 0.59% and SBI up by 0.45%.

On the flip side, Idea Cellular down by 3.14%, Reliance Industries down by 2.34%, Coal India down by 2.30%, Tata Steel down by 2.27% and Hindalco down by 1.90% were the top losers.

Top Sectoral& Stock Screening:  The gaining sectoral indices on the BSE were Consumer Durables up by 0.50%, IT up by 0.19% and TECK up by 0.07%, while Metal down by 1.62%, Energy down by 1.45%, Oil & Gas down by 0.86%, Telecom down by 0.71% and Healthcare down by 0.65% were the losing indices on BSE.

On the global front: On the global front, Asian shares were trading mostly in red, after US President Donald Trump suffered a legislative defeat last Friday when Republican leaders pulled a bill to overhaul the US health care system with the dollar weaker and gold prices up. The Bank of Korea (BOK) survey showed that South Korean manufacturers are expected to spend more on capital investment this year than they did last year, although those expenditures will be conservative and mostly geared towards maintaining facilities than expansion.

Global Signals:The Asian markets were trading mostly in red; Nikkei 225 decreased 282.42 points or 1.47% to 18,980.11, Hang Seng decreased 81.99 points or 0.34% to 24,276.28, Taiwan Weighted decreased 29.03 points or 0.29% to 9,873.95, Jakarta Composite decreased 19.88 points or 0.36% to 5,547.26 and KOSPI Index decreased 13.55 points or 0.62% to 2,155.40.

On the other hand, FTSE Bursa Malaysia KLCI increased 3.49 points or 0.2% to 1,749.24 and Shanghai Composite increased 4.69 points or 0.14% to 3,274.14.