Positive Opening Expected for Nifty - Consortium

Market bounced back after a fall in last eight consecutive days. Nifty gained by half a percent to close at 5923. However, broader markets declined with Nifty Midcaps down by over percent. Markets recovered in the last half an hour of the closing session on account of a technical bounce back. The recovery was despite disappointing IIP and CPI numbers. Markets await the WPI and SBI quarterly results expected this week.

Oil & Gas stocks witnessed smart rally on hope of further hike of diesel price and on better than expected quarterly results from ONGC and Oil India. On the other hand, Realty stocks were the largest losers today.

Unitech nosedived intra-day by 23% on media reports suggested promoter involvement in influencing the 2G spectrum case that resulted in CBI removing the public prosecutor involved in the case. Others Realty stocks like HDIL, DLF and India Bull Real slipped by 2-3%.

Pharma stocks witnessed fresh buying (Index up 1.2%) due to impressive quarterly results by Sun Pharma, Lupin etc. Sun Pharma surged by 3% to close at Rs772. Others like Lupin Labs, Dr Reddy and Divi's Lab gained by 1-2% each.

Auto stocks witnessed bargain hunting (Index up 0.9%). Tata Motors has gained by 3% to close at Rs299. Others like M&M, Bajaj Auto and Maruti gained marginally.

Tech stocks witnessed profit booking (Index down 0.6%). TCS declined by 0.5% to close at Rs1410. Others like Infosys and Tech Mahindra slipped by 1% each.

For the day coming by, Indian markets are expected to open moderately higher. Asian shares are trading marginally higher but overall activity is subdued as China, Taiwan and Hong Kong markets continues to remain closed for the Lunar New Year holiday. FIIs buying though moderated. On the positive side DIIs also sold less. Mapping the derivates data, FIIs again sold in index futures but bought in stock futures suggesting their stock specific focus.

Negative advance declines data however suggest lack of broader participation. Nifty yesterday found support near 5900 levels and ended in the positive terrain after continued facing resistance at higher levels. Nifty resistance lies at 5938 and then at 5953. Crossover of 5953 levels will be imperative for Nifty to aim higher levels. Support for Nifty exists at 5920/5900. Industrial growth contracted in December to 0.6% but ongoing government actions and further monetary easing should lead to some improvement in the industrial activity.

Source : Equity Bulls

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