Markets to open flat, support at 5900/5875 - Consortium

The main Indian stock indices rose for a second straight day on Wednesday, a day after the Lok Sabha cleared the Banking Amendment Bill, raising hope of further reforms going forward. The Lok Sabha also approved the new Companies Bill yesterday. In addition, the RBI's latest commentary has raised the odds of a rate cut in January after the central bank acknowledged moderation in inflation and below-trend GDP growth. The RBI also maintained its October guidance of a reversal in the repo rate in Q1 FY13.

Sentiment in the Indian markets was also partly supported by optimism that the US policymakers were closing in on a new budget deal that will help America avert the so-called fiscal cliff next year. FII inflows picked up after July and have since remained fairly robust. Year-to-date FII inflows into Indian shares are at US$22.70bn with a few more trading days to go in December.

The Sensex gained 0.57%, while the NSE Nifty advanced by 0.56%. For the day coming by, global cues are subdued. Gujarat based stocks may react to assembly election results. Technically Nifty has a strong support at 5900 and is not expected to slide below this level. If it falls below 5900 next support is at 5875 and it will be good opportunity to buy. Overall technically we are in a "buy on declines" market.

Source : Equity Bulls

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