Nifty has major resistance at 5054, 5077 and 5113 levels, support seen at 4964-4953 levels - Alex Mathews

The markets had opened on a positive note tracking overnight US and morning Asian markets remained in green for the rest of the day. We saw minor profit taking by noon but positively trading European markets helped our markets regain all lost gains and close at highs. Nifty even crossed the major hurdle of 5013 and closed above 5000. The markets participants were seen coming back with money as they were staying sideline and taking profits during the previous F&O expiry. FIIs were net buyers in equities after a long time this month. The markets were waiting for the GDP numbers pertaining for the quarter ended April-June which was above the market expectation. The Q1 GDP even thought slowed to 7.7% against 7.8% previously, it was above the expected lines. Apart from that manufacturing grew at 7.2% against 10.6%, mining sector grew at 1.8% against 7.4% and services sector grew at 9.1% against 9.8%.

Nifty today jumped around 2% showing renewed confidence from the part of the investors. Usually, investors would not carry forward most of their open positions when entering a long holiday if they are uncertain about the market condition. This time around we closed near to the highest point of the day when the US index futures are trading in red down around 60 points. For Nifty the major resistance is there at 5054, 5077 and 5113 levels while the support lies at 4964-4953 levels.

On the sectoral front, most of the sectors gained in within which metal, realty, bankex and IT were the major gainers while the FMCG remained lone loser. Metal stocks gained after the recent slide on fear of economic slowdown. Metal and mining stock continued its upmove today also. Banking and NBFC stock moved up after RBI panel announced the new banking license norms. Also the sentiment in the financial sector was positive across Asia and Europe on news of merger between Greece's EFG Eurobank Ergasias SA and Alpha Bank SA.

Asian markets were all trading extremely positive tracking overnight US markets which had rallied. It is the fourth consecutive gain of the Asian markets after US consumer spending rose 0.8% against -0.1% on the back of higher auto and consumer durables sales numbers. However the US markets ignored the pending home sales numbers which fell to -1.3% from 2.4% previously. In the Asian front, Japans' unemployment rate rose to 4.7% against 4.6% and the retail sales fell 0.7% against 1.2% indicating that the economic slowdown and recovery after the earthquake is not upto the anticipated level. As spending rose in US, crude prices moved up above $87 while gold prices fell below $1800.

Source : Equity Bulls

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