Indian Equities settled sharply higher on Thursday - Nirmal Bang

Indian equity settled sharply higher on Thursday after the US Federal Reserve chairman Ben S. Bernanke said Wednesday there is need to maintain accommodative monetary policy stance for the foreseeable future. Fed chairman further said the FOMC may retain interest rates to current near zero level even after unemployment rate reaches to 6.5% considering the possibility of low inflation. Even as the jobless rate may understate the weakness in the labor market, he opined.

At the close, the benchmark 30-share index, BSE Sensex added 381.94 points or 1.98% at 19,676.06 with 25 components posting rise. Meanwhile, the broad based NSE Nifty went up by 118.40 points or 2.04% at 5,935.10 with 43 components registering rise.

Nifty has managed to close above the recent hurdles of 5,900 which is a bullish signal. The index has strong support at 5,840 levels on the downside. The overall parameters on the daily chart have turned positive and the breath was also supportive in the recent rise.

Action: Nifty has an immediate resistance at 5,940 levels and on a decisive close above expect rise to 6,050 levels.

The Bank Nifty faces immediate resistance around the 11,680 levels on the upside and on a decisive close above expect rise to 11,860 & 11,950 levels. There is an Immediate Support at 11,500 levels on the downside.

Source : Equity Bulls

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