Nifty support at 6000, Eye on HUL - Consortium

It was a quite but a solid start to the week. The Nifty did not look in any danger of a big correction today. It started closed with modest gains. Just in the middle of the day there was a period where it looked like it would give up most of its gains but that got arrested towards the end. There was some support from large caps clusters today. Reliance started the day with five percent higher, after better than expected earnings on Friday evening. However, it finally got left with two point.

Stocks like L&T, BHEL, Reliance Infra and JP Associates from the infrastructure basket looked good. HUL and ITC both those FMCG stocks also looked quite well today. The Nifty's gains were capped a little bit by selling in NTPC post results. DLF did not have a good session today. Sun Pharma and TCS were other companies which had fairly ordinary sessions. However, the bigger problem is that that the market breadth is still not strong.

The last couple of days despite the Nifty moving up, mid-caps have not kept pace. Today was yet another instance of that. The advanced decline line did not look very positive. There were gainers though from aviation. Jet Airways and SpiceJet looked very good. Finolex and TV18 responded to good earnings. From the telecom space, Reliance Communications and Idea both were strong. There were names like Den Networks, JSW Energy, Kolte Patil which also had very good days. With that, there were prominent losers too. Kingfisher had a bad day. Opto Circuits and Orbit Corp were both down sharply. IndusInd Bank and Pantaloon saw some profit taking.

Some of the oil marketing companies like IOC which had run up on Friday also saw a bit of profit taking. For the day coming by markets may open flat. Yesterday Nifty witnessed range-bound session with a positive bias has ended with modest gains. US markets were closed yesterday no cues from there. Domestic cues are playing a larger role with Govt. in action mode and earning season in midway.

Today is not a big day from earnings point of view and HUL is only big numbers which are expected today. FIIs cues yesterday were decent on both cash and derivatives segment. However deteriorating market breadth is some cause of concern. The government yesterday announced a hike in import duty on gold and platinum to discourage their consumption as current account deficit widened to a record 5.4% GDP in the first half of the current fiscal as gold and crude oil imports remained high. We see Nifty moving in the range of 6050 - 6125 range.

Source : Equity Bulls

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