Axis Bank, SBI, ICICI likely to be under pressure

Bull market or bear market today?

Domestic macro environment remains weak and foreign portfolio investors are maintaining risk-averse mode. However, we might see some short covering with the market being near the oversold region. Recent positive movement over US-China trade talks, inflows from domestic funds and expectations of supportive measures from the government may aid the market.

Stocks likely to be in the limelight today?

Axis Bank, SBI, ICICI and YES Bank to remain under pressure due transmission of rates, non-performing issues and PSU consolidation. Strong dollar to help Infosys, TCS and HCL Technologies.

Sectors likely to impact market today?

In the short term, banking stocks will be under pressure as transmission of rate cuts will hit banks' margins, while concerns for banking sector are mounting due to high valuation and NPA issues. IT stocks are likely to outperform in the near term on account of weak rupee.

Your mid-term view?

The market is expected to remain sideways with a mixed bias, volatility is likely to be maintained, we expect Nifty50 to trade in a range of 10650-11100 in the short to medium term. The final direction will depend on the developments like government measures, stability in the financial system, US-China trade talks and their implications on the economy.

—Vinod Nair, Head Of Research at Geojit Financial Services