Nifty to trade in range of 5980 to 6050 - Consortium

The key Indian stock indices closed marginally higher on Tuesday, as investors shrugged off a warning by ratings agency Fitch about a possible downgrade of India's sovereign rating. Fitch Ratings reiterated its "negative" outlook on India's sovereign credit rating, citing concerns about slowing GDP growth, sticky inflation and an uncertain fiscal outlook. However, expectations of a good earnings season for India Inc. and anticipation of further economic reforms by the Government perked up the mood.

The BSE Sensex was up 0.26% while the NSE Nifty gained 0.22%.The broader indices ended mixed. The BSE Mid-Cap Index was flat while the BSE Small-Cap index rose by ~0.30%.The BSE Realty index and the BSE FMCG index were the top gainers, rising by ~1.0% each while the BSE Pharma index and the Power index advanced modestly. The BSE Consumer Durables index was the biggest laggard, down ~2.0%. The BSE Metals index was down by ~1.0%. The BSE Capital Goods, IT and Oil & Gas indices also closed lower.In terms of index constituents, ITC, HDFC, BHEL, Cipla, Sun Pharma, Dr. Reddy's, Bharti Airtel, SBI, Reliance Infra and Power Grid were the biggest gainers in the Sensex and Nifty. IDFC, Wipro, Tata Steel, Sesa Goa, L&T, UltraTech Cement, BPCL, Infosys, Hero MotoCorp and Sterlite Industries were the notable losers.Asian markets finished lower, with the Japanese and Hong Kong markets pacing the fall. The Nikkei and the Hang Seng declined by ~0.90% apiece while the Straits Times was down 0.40%.

For the day coming by global cues are quiet with Asian markets trading rangebound. Yesterday, Nifty bounced from the lower levels after filling the gap between 5965-5980 levels and managed to close in green marginally above 6000 levels. Sustenance at these levels will be imperative for Nifty to aim for 6100 levels. In Jan series for Nifty, Highest Call OI is at 6200 strike with 8.1m shs down 0.2m shs and highest Put OI is at 5800 strike with 7.1m shs up 0.8m shs. This indicates nifty broad range of 5800 - 6200.The near term catalysts will be latest quarterly results. Infosys announces Q3 results on Friday, 11 January 2013. TCS announces Q3 results on 14 January 2013. Axis Bank announces Q3 results on 15 January 2013. Bajaj Auto unveils Q3 results on 16 January 2013. Further, Industrial production data for November 2012 will be unveiled on Friday, 11 January 2013 and inflation numbers will be released on Monday, 14 January 2013.The Reserve Bank of India (RBI) undertakes Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013.

Source : Equity Bulls

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