>DAILY MARKET & TECHNICAL OUTLOOK (ICICI DIRECT)

Key points
■ Market Outlook — Open flat
■ Positives — New government to take oath today
■ Negative —MFs selling

Market outlook

■ The Indian market is likely to open flat today. It ended sharply lower on Thursday, as traders booked profits in frontline stocks and bought undervalued small-cap stocks. Weak cues from the overseas market also kept the large-cap indices under check. Today the markets are expected to open flat with a mixed trading session. More clarity would emerge over the weekend, as investors are likely to take cues from new cabinet formation

■ The Sensex has supports at 13480, 13200 and resistances at 13840, 14040. The Nifty has supports at 4190, 4150 and resistances at 4290, 4340

■ India's wholesale price index rose 0.61% in the 12 months to May 9 compared to an annual rise of 0.48% in the previous week and 8.57% in the corresponding week a year ago

■ Asian shares pared back early losses in the morning session on Friday, to trade mixed, with fiscal and economic concerns dragging sentiments down. Stocks tied to a recovery in growth, including technology and automotive shares, weighed on markets

■ US stocks fell on Wednesday, led by financials in a late-stage sell-off, after the Federal Reserve gave a more pessimistic view on the economy, tempering hopes for a quick recovery. The Dow Jones industrial average fell 52.57 points, or 0.62%, at 8,422.28. The Standard & Poor's 500 Index lost 4.64 points, or 0.51%, at 903.49. The Nasdaq Composite Index was off 6.70 points, or 0.39%, at 1,727.84

■ Stocks in news: Tata Power, Patel Engineering, Dr Reddy’s Lab.

To see full report: OPENING BELL 220509